Central Typesetting Co. v. Ober

Citations

• 36 Pa. Super. 291
• 1908 Pa. Super. LEXIS 153

Syllabus

<p>Promissory notes — Use of notes to pay debts of payee — Consideration.</p> <p>If one elects to make and deliver bis promissory note to another to be used to pay the debts of the latter, and they are so used, the former cannot be heard to defend on the ground that he received no consideration for the notes.</p> <p>Where promissory notes are drawn for the benefit of a street railway company, and are made payable to a creditor of the company for the purpose of paying the company’s debt to the payee, the maker cannot .set up as a defense that the notes were delivered to the payee upon condition that the latter would return to the street railway company certain other promissory notes, and that the payee had neglected and refused to perform such condition; nor in such a case can the maker set up as a defense a mere averment that the payee had assigned a portion of the claim against the street railway company to a third person, without any averment of facts to show that the assignment was valid and binding upon the payee, which was a corporation.</p> <p>Where fraud is set up as a defense to a promissory note sufficient facts must be averred to enable the court to determine whether there was or was not fraud in the transaction.</p>