Peabody v. Peters
Massachusetts Supreme Judicial Court
Assumpsit on a promissory note made by the defendants, May 27, 1822, for 2520 dollars, payable to Samuel Upton or order in three months and grace. It was proved at the trial, that before the note became due, both Upton and the defendants having stopped payment, Upton indorsed and delivered it to one Haven as collateral security for a debt, with an agreement that Haven should not attempt to collect the note, but should hold u till Upton could otherwise pay his debt to him.
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Assumpsit on a promissory note made by the defendants, May 27, 1822, for 2520 dollars, payable to Samuel Upton or order in three months and grace. It was proved at the trial, that before the note became due, both Upton and the defendants having stopped payment, Upton indorsed and delivered it to one Haven as collateral security for a debt, with an agreement that Haven should not attempt to collect the note, but should hold u till Upton could otherwise pay his debt to him. Under this agreement Haven held the note till May 13, 1824, wher. Upton settled with him and took up the note. While Haven…
1Opinion of the Court
Parker C. J.
delivered the opinion of the Court. The note sued in this action was indorsed to the plaintiff two years after it became due ; so that he is exposed to any defence which may be legally set up against Upton the payee This is not questioned ; but it is contended, that as .the only mode by which the defence could be applied to Upton would be filing an account in set-off, and as that remedy exists only inter partes to the contract, the defendant must be denied *3the remedy which he would have had against Upton. We cannot readily admit, that where a principle of law regulating contracts…
2Cases cited2 opinions
- Haxton v. BishopNew York Supreme Court · 1829
- Collins v. AllenNew York Supreme Court · 1834