Sumter County State Bank v. Hays

Citations

• 68 Fla. 473
• 67 So. 109
• 1914 Fla. LEXIS 548

Syllabus

<p>1. Where an endorsee takes a negotiable note with knowledge of an executory contract that is the sola consideration for the note, such endorsee is not a holder in due course without “notice of any infirmity in the instrument or defects in the title” thereof within the meaning of the negotiable instrument statute, even though the endorsee did not know of the subsequent breach of the contract.</p> <p>2. Where an executory contract is the sole consideration for a negotiable note, the contract and its breach may be shown in defense of an action on the note by a holder who took with knowledge of the contract.</p>