Thornton National Bank v. Robertson

Citations

• 89 Kan. 509
• 132 P. 193

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Note — Payable to Third Person — Delivered to Payee Who Surrendered Another Note — Good Consideration. Where one executes his promissory note payable to a third person and delivers it to another to be used in the adjustment of an indebtedness from the one to whom the note is delivered to the third person, payee, without any express limitations as to such use, and the one in possession delivers it to the payee named therein and receives therefor his own note which the third person had theretofore held against him; held, that by the transaction the first party made the second party his agent to make any use of the note which, in the 'absence of fraud, may be agreed upon between the second and third parties in the adjustment of the indebtedness of the second party to the third party; also, that by the transaction the first party became indebted to the third party primarily and not as surety for the amount of the note-according to its terms.</p> <p>2. -Novation. In the situation recited above the first . party is substituted as a new debtor by way of novation for the original debtor and the surrender of the note of the original debtor constitutes a sufficient consideration for the new note.</p> <p>3. Trial — Instructions — Consideration for Promissory Note. Evidence having been produced that the appellee had procured the note sued on for a valuable consideration, the court erred in instructing the jury, in effect, that the appellee could not recover unless the appellant had received a valuable consideration therefor. A sufficient consideration to render a promissory note valid in the hands of the payee may be either a substantial equivalent in value received by the maker or a like equivalent parted with by the payee.</p>