Huddleston v. McMillan Bros.

Citations

• 112 Miss. 168
• 72 So. 892

Syllabus

<p>1. Conteacts. Validity. Non-payment of tax. Bills and notes. Transfer. Bona fide purchaser. Defenses.</p> <p>Contracts made by a party who has not paid his privilege tax are valid since April 21, 1906, at which time the statute (Ann. Code 1892, section 3401), declaring all contracts made by a party who had not paid his privilege tax void was amended (Code 1906, section 3894) and the legislature omitted from the statute the provision, declaring contracts void when made by a person who had not paid his privilege tax, and the penalty for such failure was made a fine and imprisonment only. ■</p> <p>2-, Bills and Notes. Transfer. Bona-fide purchaser. Defenses.</p> <p>Where defendants gave their promissory note payable to bearer for the purchase price of a stallion, in a suit on said note by a dona-fide purchaser thereof for value without notice, the defendants cannot set up as a defense that there was a failure of consideration, in that the stallion did not measure up to the guaranty of his procreating qualities, or that the seller of the stallion was a “vendor of horses” at the time he sold to appellees the stallion in question and had not paid a privilege tax to carry on the business of “vendor of horses” in this state and that therefore the contract as evidenced by the note was void. Since in such case our anti-commercial statute, Code 1906, section 4001, does not apply.</p>