Price v. Neal
Court of King's Bench
97 Eng. Rep. 871 (1762)
Relevant factsFree
Price (plaintiff) paid and accepted two drafts purportedly drawn by Sutton, ultimately paying Neal (defendant), a good-faith holder for value with no knowledge that Sutton's signature had actually been forged by a man later hanged for the crime; upon discovering the forgery, Price sued Neal to recover the payments, and the jury returned a verdict for Price subject to the court's opinion.
IssueFree
Whether a drawee who pays or accepts a draft may pass on to prior good-faith parties the risk that the drawer's signature might have been forged.