Hornburg v. Larson

Citations

• 93 Wash. 74
• 160 P. 11
• 1916 Wash. LEXIS 1159

Syllabus

<p>Bills and Notes — Validity—Failure of Consideration. There is entire failure of consideration for a mortgage note given as part consideration for the price of land, where, by mutual agreement, the sale was rescinded and an assignee of the note was informed of that fact when he took the note and agreed, in its stead, to take the note of the vendor.</p> <p>Same. The fact that the vendor simply signed the purchaser’s note, which the parties had agreed to redeliver, and delivered it to the assignee, would not deprive the purchasers of the defense of failure of consideration.</p> <p>Same — Renunciation—Statutes—Application. Rem. 1915 Code, § 3512, providing that the holder of a negotiable instrument must renounce his rights in writing unless the instrument is delivered up has no application to a note for which the consideration failed, to the knowledge of the holder at the time he acquired it.</p> <p>Same — Action—Failure of Consideration — Oral Evidence — Admissibility. It is competent to show by oral proofs that the consideration for a note, given for the purchase price of land, had failed, to the knowledge of the holder, by a mutual rescission of the sale.</p>