Question 315.— AB sends CD a three months' note in settlement for an invoice of goods. CD, finding he cannot discount the note, returns it to AB, asking that another name be added in order that he may be able to negotiate it. AB gets EF to endorse the note, and returns it to CD, who endorses it beneath the signature of EF, and negotiates it. The note is dishonoured, and EF retires it after maturity. What is the position of CD and EF; who is the first endorser? If CD, then EF, as the subsequent endorser, must have the right to recover from him. Can CD set up that EF endorsed as surety for AB; and if so, is it a good defence on the part of EF that he endorsed, at the request of AB, to enable CD to get the note discounted?

Answer.—The question involved here is entirely one of fact. If EF endorsed as surety for CD, the latter must protect him; if he endorsed as surety for AB, and to make AB's note more satisfactory to CD, EF has no recourse against CD. The order of the names is not material upon the true tacts being shown.