Watson v. Flanagan
Texas Supreme Court
Error from Rusk. The plaintiff brought suit upon a promissory note, made by the defendant in error, payable to Lee, and by him transferred to Hill before maturity; who transferred it to the plaintiff after its maturity. The defence was a partial failure of consideration.
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Error from Rusk. The plaintiff brought suit upon a promissory note, made by the defendant in error, payable to Lee, and by him transferred to Hill before maturity; who transferred it to the plaintiff after its maturity. The defence was a partial failure of consideration. The Court instructed the jury “ that if the note was transferred by Hill to the plaintiff “ after it fell due, and with a knowledge of the defence in- “ tended to be set up by Flanagan against the note, then they “ would be authorized to find for the defendant,” to which the plaintiff excepted. There was a verdict and…
1Opinion of the CourtWheeler, J.
It is a general rule, that the total or partial failure of consideration may be insisted upon as a defence, between any of the immediate or original parties to the contract. If the holder has notice when he purchases the note, that it is void in the hands of the party from whom he purchases it, either from fraud, want or failure, or illegality of eonsider*355ation, he will take it subject to the same equities as that party. (Story on Bills, Sec. 187.) “ On the other hand, the partial or “ total failure of consideration, or even fraud between the an- “ tecedent parties, will be no defence or bar…
2Cited by15 opinions
- Herman v. GunterTexas Supreme Court · 1892
- Hoffman & Co. v. Bank of MilwaukeeSupreme Court of the United States · 1871
- Howard v. StahlCourt of Appeals of Texas · 1919
- Levy v. FordSupreme Court of Louisiana · 1889
- Potter v. MobleyCourt of Appeals of Texas · 1917
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