Farmers Savings Bank v. Hansmann
Supreme Court of Iowa
Appeal from Lyon District Court. — Hon. William Hutchinson, Judge. This action was brought against the defendant as the indorser of a promissory note in terms payable to him, which contained the following clause: “The makers, indorsers, and guarantors of this note agree to pay a collection fee of ten per cent, of the amount due, if not paid at maturity, 1 or if suit is brought hereon, but in no case shall said fee be less than ten dollars, and consent that a justice of the…
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Appeal from Lyon District Court. — Hon. William Hutchinson, Judge. This action was brought against the defendant as the indorser of a promissory note in terms payable to him, which contained the following clause: “The makers, indorsers, and guarantors of this note agree to pay a collection fee of ten per cent, of the amount due, if not paid at maturity, 1 or if suit is brought hereon, but in no case shall said fee be less than ten dollars, and consent that a justice of the peace 'may have jurisdiction to the amount of three hundred dollars, and hereby severally waive presentment for payment,…
1Opinion of the CourtSherwin, J.
2 The controlling question before us is ■whether the defendant may show want of consideration for his indorsement of the note in suit. That the maker of a note may- impeach the consideration is well settled. It is a general rule that an indorsement is a contract, and that, like every other contract, it requires consideration; and it- is held that “between immediate parties the want of consideration invalidates it.” 3 Randolph, Commercial Paper (2d Ed.), section 691. If the defendant’s contention is true, his indorsement was without consideration, and made for the express purpose of…
2Cases cited11 opinions
- Wood v. MatthewsSupreme Court of Missouri · 1881
- Harrison v. McKimSupreme Court of Iowa · 1865
- Hazzard v. DukeIndiana Supreme Court · 1878
- Allin v. WilliamsCalifornia Supreme Court · 1893
- Kirkham v. BostonIllinois Supreme Court · 1873
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3Cited by6 opinions
- State Savings Bank of Logan v. OsbornSupreme Court of Iowa · 1920
- Bennett v. CommissionerUnited States Board of Tax Appeals · 1939
- Berry v. GrossSupreme Court of Iowa · 1921
- Monroe v. State Bank of Patch GroveWisconsin Supreme Court · 1923
- Northern Trust & Savings Bank v. EllwoodSupreme Court of Iowa · 1925
1 more not listed; retrieve them via the Exa API.