Chance v. Isaacs & Smyth
New York Court of Chancery
This was an appeal from a decree of the vice chancellor of the first circuit. The facts, as they appeared from the bill and answer, were as follows : The defendant Isaacs, in September, 1833, being indebted to the complainant in the sum of $687,28, gave to him a negotiable note for that amount, payable four months after date; which note the complainant, soon after, endorsed and transferred to a third person, in the ordinary course of business.
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This was an appeal from a decree of the vice chancellor of the first circuit. The facts, as they appeared from the bill and answer, were as follows : The defendant Isaacs, in September, 1833, being indebted to the complainant in the sum of $687,28, gave to him a negotiable note for that amount, payable four months after date; which note the complainant, soon after, endorsed and transferred to a third person, in the ordinary course of business. Sometime afterwards the complainant became indebted to Isaacs in about the sum of $700, for which he gave him two promissory notes, payable at four and…
1Opinion of the Court
The Chancellor.
It is now well settled that a person who receives a negotiable promissory note from the payee, out of the usual course of business, or in security for an antecedent debt, and not for a present consideration, such as the payment of money, the delivery of goods, or the relinquishment of an existing security, takes it subject to all the equities which existed against it in the hands of the former holder. And this principle applies with peculiar force to the voluntary assignee of an insolvent debtor, who receives negotiable paper from the assignor, under a general assignment for…
2Cited by25 opinions
- Rothschild v. . MackNew York Court of Appeals · 1889
- Fera v. . WickhamNew York Court of Appeals · 1892
- Myers v. . DavisNew York Court of Appeals · 1860
- Tuscumbia, Courtland & Decatur Rail Road v. RhodesSupreme Court of Alabama · 1845
- Munger v. . Albany City National BankNew York Court of Appeals · 1881
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