Sturges v. Miller

Citations

• 80 Ill. 241

Syllabus

<p>1. Promissory note—subject to what defenses. A person not the payee of a promissory note, who becomes the owner thereof without its having been assigned, holds it subject to the same defense that it would be in the hands of the payee.</p> <p>2. A promissory note in the hands of one who is not a purchaser thereof for value, is subject to the same defenses that it would be in the hands of the original holders.</p> <p>3. Same—failure of consideration. Where notes were given for the purchase of a propeller, the title to which was warranted by the seller, and the vessel was libeled and sold for old debts, which were liens upon it at the time of the sale, so that it was wholly lost to the purchaser, it was held, that the consideration of the notes had wholly failed, and that a mortgage given to secure their payment should be canceled and the notes declared void.</p>