Auten v. Gruner

Citations

• 90 Ill. 300

Syllabus

<p>1. Fraud and circumvention-—in procuring execution of note. Where a party engaged in selling churns called upon a farmer at his residence and sold him a churn for $10, which the purchaser offered to pay at once, but the seller suggested he would take a note for the price, at six months without interest, and prepared one for execution, which the maker read twice before signing, and saw that it was for $10, but by some device or trick, unknown to the maker, he signed a note for $300, it was held, that the execution of the note was obtained by fraud and circumvention, and that the maker was not guilty of such want of care as to estop him from interposing the defense as against a bona fide assignee before maturity.</p> <p>2. Assignment—facts to put assignee on inquiry. Where a banker purchases notes on farmers, residing in the vicinity, of a stranger known to be engaged in selling churns through the country, the notes being offered for sale at an unusually large discount, the fact of the proposed large discount, being a suspicious circumstance, is enough to put a reasonably cautious person on inquiry as to the consideration of the notes, before buying.</p>