Daw v. Niles

Citations

• 4 Cal. Unrep. 144
• 33 P. 1114
• 1893 Cal. LEXIS 1146

Syllabus

<p>Parol Evidence—Illegality of Contract.—In an Action to Foreclose a mortgage given by defendant to secure a note for money loaned to him by plaintiff, defendant may show by parol evidence that at the time of executing the note and mortgage it was agreed, as part of the same transaction, that defendant should pay all taxes levied on the money loaned, or on the mortgage, but that the agreement was purposely omitted from the mortgage, in order to evade Constitution, article 13, section 5, which provides that imposing such an obligation on a borrower shall avoid the contract, as to any interest specified therein, as such parol evidence tends to “establish illegality” of the contract, within Code of Civil Procedure, section 1856, prescribing when such evidence is admissible to affect a writing.</p>