Nickel v. Fox

The plaintiff sues upon a check given by the defendant payable to a third person and indorsed to the plaintiff. The defendant stopped payment of the check and denies liability.

There is no dispute that the check was given by the defendant as the purchase price of goods bought by him from the plaintiff and was made payable to a nominee for the plaintiff. Liability is disputed on the ground that no title to the goods passed or could pass from the plaintiff to the defendant; that the consideration has failed; and that the transaction is illegal. This defence is open where, as here, the plaintiff…