Merriam v. West

Citations

• 114 Kan. 131
• 216 P. 1102
• 1923 Kan. LEXIS 39

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Promissory Note — Given for Illegal Consideration — Sixty-fourth Interest in Oil and Gas Lease. A note given for the sale of a one sixty-fourth interest in an oil and gas lease, the seller having no permit from the charter board to sell such fractional interest in the lease, in violation of chapter 153 of the Laws of 1919 and section 9469 of the General Statutes of 1915, prohibiting such sale and making it a felony, is given for an illegal consideration within the meaning of the negotiable instruments law. (Gen. Stat. 1915, § 6582.)</p> <p>2. Same — Indorsee of Illegal Note May Be a Holder in Due Course. The indorsee of such a note, negotiable in form, who is a holder in due course, may recover thereon from the maker.</p>