Shinn v. Fredericks

Citations

• 56 Ill. 439

Syllabus

<p>1. Promissory note — subsequent holder by delivery — subject to what defenses. The maker of a promissory note may set up any defense he may have to the note, in the hands of a purchaser, by mere delivery, or who takes it after maturity.</p> <p>2. Payment—what constitutes. Where a grantor of land, by agreement with his grantee, rescinds the sale and receives back the deed, but the notes held by the grantor, which were given for the purchase money, were not surrendered to the maker, as was agreed, remaining in the hands of the agent of the grantor, who transferred one of them by delivery, it was held, such agreement of rescission operated as a satisfaction of the notes, and the defense would be availing as against the subsequent holder.</p> <p>3. Where a person buys land from one who has notes outstanding, which were given upon his own purchase, the second purchaser agreeing, as a part of the consideration, to pay such outstanding notes of his grantor, and upon a sale by himself to the party who holds those notes, receives them in payment for the land, that will amount to a payment of the notes so taken up, and a defense will arise thereon against any subsequent holder of them who is chargeable with notice.</p> <p>4. Mortgage—merger in the fee. Where the fee to lands and a mortgage on the same are united in the same person, the latter becomes merged in the former, unless there are equitable reasons for keeping the mortgage alive.</p>