This section is from the book "The Law Of Contracts", by William Herbert Page. Also available from Amazon: Commercial Contracts: A Practical Guide to Deals, Contracts, Agreements and Promises.
In other jurisdictions a negotiable instrument,1 executed by the debtor or by another person,2 as at a higher rate of interest than the original indebtedness,3 has been held to be prima facie payment of an antecedent debt. A note given for a contemporaneous debt has been held in these jurisdictions to be prima facie payment.4 Even in such jurisdictions it is not a matter of law, but of fact, to go to the jury with the evidence.5 Even where the debtor's notes are prima facie payment the vendor who has taken such notes may still exercise the right of stoppage in transitu if the vendee becomes insolvent.6 It is necessary for the vendor only to tender such note in court. Even where a note is prima facie payment in most instances, it is not so where the original debt is secured by mortgage.7 Even in jurisdictions which treat a note as ordinarily not prima facie payment, a note of a third person given by the holder thereof for a debt created by himself at the time of such transfer is held to be prima facie payment.8
Washington Larsen v. Allan Line Steam Ship Co., 45 Wash. 406, 122 Am. St. Rep. 926, 9 L. R. A. (N.S.) 1253, 88 Pac. 753.
1 1ndiana. Sutton v. Baldwin, 146 Ind. 361, 45 N. E. 518; Bradway v. Groenendyke, 153 Ind. 508, 55 N. £. 434; Scott v. Edgar (Ind. App.), 60 N. £. 468; Roberts v. Vonnegut (Ind. App.), 104 N. £. 321.
Maine. Bunker v. Barron, 79 Me. 62, 1 Am. St. Rep. 282, 8 Atl. 253; Bryant v. Grady, 98 Me. 389, 57 Atl. 92.
Massachusetts. Quimby v. Durgin, 148 Mass. 104, 1LR.A. 514, 19 N. £. 14; Davis v. Parsons, 157 Mass. 584, 32 N. £. 1117; Baldwin v. Porter, 217 Mass. 15,104 N. £. 492.
Vermont. Wemet v. Lime Co., 46 Vt. 460; Hadley v. Bordo, 62 Vt. 285, 19 Atl. 476.
See also, Moreau River State Bank v. Japinga, 37 S. D. 404, 2 A. L. R. 604, 158 N. W. 786.
2 Dick v. Flanagan, 122 Ind. 277, 7 L. R. A. 590, 23 N. £. 765; Union Ins. Co. V, Grant, 68 Me. 229, 28 Am. Rep. 42;
Goodnow v. Hill, 125 Mass. 587; Brown v. Bishop, 225 Mass. 276, 114 N. £. 316.
3 Dick v. Flanagan, 122 Ind. 277, 7 L. R. A. 590, 23 N. E. 765.
4 Thompson v. Peck, 115 Ind. 512, 1 L. R. A. 201, 18 N. E. 16; Bradway v. Groenendyke, 153 Ind. 508, 55 N. £. 434.
5 Quimby v. Durgin, 148 Mass. 104, 1 L. R. A. 514, 19 N. E. 14; Brown v. Bishop, 225 Mass. 276, 114 N. E. 316.
6 Brewer Lumber Co. v. Boston & Albany Ry., 179 Mass. 228, 88 Am. St. Rep. 375, 54 L. R. A. 435, 60 N. E. 548.
7 Bunker v. Barron, 79 Me. 62, 1 Am. St. Rep. 282, 8 Atl. 253.
8 Wright v. Crockery Ware Co., 1 N. H. 281, 8 Am. Dec. 68; Youngs v. Sta-helin, 34 N. Y. 258; Hall y. Stevens, 116 N. Y. 201, 5 L. R. A. 802, 22 N. E. 374; Delafield v. Lewis Mercer Construction Co., 118 N. Car. 105, 24 S. E. 10; Challoner v. Boyington, 91 Wis. 27, 64 N. W. 422 [s. c, 83 Wis. 309, 53 N. W. 694]; Gallagher v. Ruffing, 118 Wis. 284, 95 N. W. 117.
Some courts treat a draft as prima facie payment of an antecedent debt.9 Delivery of a draft has been held to be prima facie payment of a contemporaneous debt.10
 
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