Karl v. Maloney

Citations

• 111 Kan. 93
• 205 P. 1037
• 1922 Kan. LEXIS 181

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Promissory Notes — Failure of Consideration — Answer States Good Defense —Demurrer. Where a note is given in consideration of the promise of the payee to deliver an article the breaking of that promise is a defense to an action on the note which is commonly and intelligibly referred to as a failure of consideration, whether or not that term is strictly accurate.</p> <p>2. Same. Where a note is given in consideration of a promise of the payee to give the maker a certificate of shares in an oil enterprise, nothing being said as to when the delivery is to take place, there is an implication that it is to be made within a reasonable time, and in an action on the note begun over a year later the allegation of an answer that the consideration had failed because no certificate had been delivered, coupled with a statement showing an intention not to deliver it, sufficiently alleges a breach of the agreement.</p> <p>3. Same — Answer—Selling Stock in Violation of Blue-sky Law. An allegation in such an answer that at the time of the transaction referred to the payees were selling such shares in violation of the blue-sky law, while very general in its terms, is held as against a demurrer sufficient to present the issue of the sale haying been made in violation of that law.</p>