National Bank & Loan Co. v. Petrie, 189 U.S. 423 (1903)

National Bank & Loan Company v. Petrie


No. 166


Argued and submitted February 21, 1903
Decided March 9, 1903
189 U.S. 423

ERROR TO THE SUPREME COURT
OF THE STATE OF NEW YORK

Syllabus

Where a national bank has sold certain bonds and the vendee has obtained a judgment for the purchase money in a state court on the ground that the sale was induced by false representations of the president of the bank, the judgment will not be reversed on the ground that the sale of the bonds was without the authority of the bank and was illegal and void. The fraud is prior to the sale and authorizes a rescission; nor can the bank claim that the fraud was perpetrated by an agent who did not represent it for illegal purposes. The bank must adopt the whole transaction or no part of it.

The case is stated in the opinion of the Court.