Klots Throwing Co. v. Manufacturers' Commercial Co.

Citations

• 179 F. 813
• 30 L.R.A.N.S. 40
• 1910 U.S. App. LEXIS 4709
• 30 L.R.A (N.S.) 40

Syllabus

<p>1. Bills and Notes (§ 144*) — Negotiability.</p> <p>A note is not negotiable merely because it contains no conditions .precedent, performance of which must be alleged in suing on it.</p> <p>[Ed. Note. — Eor other cases, see Bills and Notes, Cent. Dig. § 360; Dec. Dig. § 144.*]</p> <p>2. Bills and Notes (§ 164*) — Negotiability—Essentials.</p> <p>It Is elementary that a promise to pay must he absolute and unconditional to make the instrument containing it a negotiable note.</p> <p>[Ed. Note. — For other eases, see Bills and Notes, Cent. Dig. 411; Dec. Dig. § 164.*]</p> <p>3. Bills and Notes (§§ 164, 315*) — Negotiability—Defenses Against Assignee of Nonnegotiable Note.</p> <p>A note containing special stipulations and payable on a contingency is not negotiable, and is subject in the hands of an assignee to any defense available against the payee.</p> <p>[Ed. Note. — For other eases, see Bills and Notes, Cent. Dig. §§ 411, 758; Dee. Dig. §§ 164, 315.*]</p> <p>4. Bills and Notes (§ 315*) — Defenses Against Assignee of Nonnegotiable Note.</p> <p>When payment of a note is expressly made subject to equities growing out of, and defenses based'on, an existing or contemporaneous agreement, one taking the note holds it subject to such equities and defenses.</p> <p>[Ed. Note. — For other cases, see Bills and Notes, Cent. Dig. § 758; Dec. Dig. § 315.*]</p> <p>5. Bills and Notes (§ 315*) — Defenses Against Teansfekee.</p> <p>A note “subject to terms of contract between maker and payee” of a specified date is subject to the maker’s defenses in the hands of a transferee.</p> <p>[Ed. Note. — For other cases, see Bills and Notes, Cent. Dig. § 758; Dec. Dig. § 315.*]</p>