Lipman v. Lowitz

Citations

• 78 Ill. 252

Syllabus

<p>1. Composition agreement—construction of. A composition agreement should not receive a construction more comprehensive than the reasonable import of its language would signify, and should be limited in its effect to such matters as were within the contemplation and intention of the parties at the time of its execution.</p> <p>2. An agreement by which a creditor agrees to take 25 per cent on each and every dollar that his debtor owes and is indebted to him, in full discharge and satisfaction of the several debts and sums of money that the debtor owes and stands indebted to him, does not affect any debts which may afterwards accrue to the creditor.</p> <p>3. Where a creditor held several notes of his debtor, and indorsed one of them to a third party, and afterwards, and whilst said indorsed note belonged to the indorsee, made a composition agreement with his debtor, whereby he released and discharged him from all debts and sums of money, then due and owing from such debtor to him, stating the aggregate amount of such indebtedness: Held, that this agreement would not affect the right of the creditor to collect from the debtor whatever sum he might afterwards have to pay, as indorser of the note so indorsed before the execution of the composition agreement.</p> <p>4. Payment—as to the mode. And in such case it would not affect the right of recovery of such indorser as against the maker, that the former paid the note to the indorsee by giving his own note therefor instead of paying the money.</p>