Drennan v. Bunn

Citations

• 124 Ill. 175
• 16 N.E. 100

Syllabus

<p>1. Assignment—“without recourse”—liability of the indorser. An indorser of a note, although without recourse,” will be liable to the indorsee or holder, on the implied warranty that the note is a valid obligation for the amount expressed upon its face. If the note is usurious, and the maker successfully interposes the defence of usury, and defeats the collection of the interest reserved in the note, the indorser will be liable over to the in- . dorsee or holder for the deficiency thereby occasioned.</p> <p>2. Action—for money had and received—to recover bach money paid on the fraudulent delivery of goods sold. Where money is paid by one party to another for a given article assumed to be sold, but the seller delivers to the purchaser only a worthless imitation of that article, there is a legal fraud, and an action for money had and received will lie for the money thus paid for which nothing has been received.</p> <p>3. Same— on failure of consideration—as, in case of a refusal to deliver a part of the goods purchased and paid for. If a buyer has paid for a certain quantity of goods, and the vendor has delivered only a part, and makes default in delivering the remainder, the buyer may rescind the contract for the deficiency, and recover the price paid for the quantity deficient. This is in its nature a total failure of consideration for the part of the price paid, as contradistinguished from cases of a partial failure of the whole.</p> <p>4. Same-—on the purchase of securities which are liable to defences— of a recovery over. The sale of a chose in action by the payee, expressed to be for a given amount, but in fact subject to be reduced to a sum materially less by the defence of usury, to a party having no previous notice of the usury, and without informing him of the defence, is such a legal fraud as will subject the vendor, even though he may have indorsed without recourse, to an action by the vendee for the sum lost by the defence of usury. The same rule would