Sanders v. Bagwell

Citations

• 32 S.C. 238
• 7 L.R.A. 743
• 10 S.E. 946
• 1890 S.C. LEXIS 32

Syllabus

<p>1. Any material alteration of a note after its delivery will destroy it as to the parties thereto not consenting; and any independent valid contract, made by the principal, which materially affects the terms of a note, will release a non-consenting surety.</p> <p>2. Underneath a sealed note, payable at one day, with no provision as to interest, was written: “The above note is to be accounted for with interest at 8 per cent, per annum,” signed by the first maker. Held, that this addendum was not intended to be binding only on the party who signed it, but to be a change in the rate of interest of the note itself, and thereby the note was rendered void as to the other maker, who did not consent to this alteration in the contract.</p> <p>3. This addendum was nudum pactum, no consideration therefor being alleged and proved.</p> <p>4. A material change in the terms of a written contract, e. g., in the rate of interest, based upon a valid consideration, is binding upon the principal debtor who made the change, but the non-consenting surety is ' thereby discharged without regard to whether the change was beneficial to the surety or not.</p>