Old Colony Trust Co. v. Stumpel

In an action by a bona fide purchaser of notes, given in part payment of a motor truck sold to defendant by the Old Reliable Motor Truck Corporation, defendant sets up failure of consideration. The truck was not satisfactory and was returned. The defense is good unless the notes are negotiable instruments. In the margin is printed: “ This note is given in accordance with the terms of a conditional sales agreement between the payee and maker hereof.” Printed on the back is: “ The within note is subject to the terms of a conditional sales agreement executed by the maker thereof upon this date.”

T…