The situation of the accounts between the drawer and drawee,1 or an abuse of the confidence of the drawee,2 or a failure on the part of the drawer to carry out his contract with the drawee,3 or a closing of the accounts between the drawer and drawee,4 or any other dealings between the drawer and the promisor,5 will not affect the person who has acted upon the authority in conformity with it, unless the fact is known to the payee and is of such a character that he is able to infer that the authority would no longer continue, or such that his acting upon the authority would be a fraud upon the promisor.6 Nor will a delay in presenting the draft for acceptance be a defense for the promisor where the holder parted with value,7 unless his conduct amount to an estoppel; nor can he defend on the ground of delay where the drafts are drawn against the proceeds of shipments which he has received.8 The defenses of failure to act upon the power or promise within a reasonable time, of revocation of the authority, and of failure to conform to the authority granted, have already been considered in the preceding sections.9

1 There was never any acceptance of the offer by the offeree.

2 Lienow v. Pitcaim, 2 Paine, C. C. 517.

3 Ranger v. Sargent, 36 Tex. 26.

4 See the case cited in the next note and Michigan State Bank v. Leavenworth, 28 Vt. 209. But compare Ilsley v. Jones, 12 Gray, 260. .

5 First Nat. Bank v. Clark, 61 Md. 400.

6 De Tastell v. Cronsillat, 2 Wash. C C. 132; Hall v. First Nat. Bank,

133 I1L 234. Death revokes the authority. Michigan State Bank v. Leavenworth, 28 Vt. 209.

7 Ballard v. Fuller, 32 Barb. 68. It may be revoked as a promise to accept, except as to some one who has acted upon it. Robbins v. Lambeth, 2 Rob. (La.) 304.

1 Palmer v. Rice, 36 Neb. 844.

2 Gray v. Kentucky Bank, 29 Pa. 365.

3 Central Sav. Bank v. Richards, 109 Mass. 413