Union Investment Co. v. Rosenzweig

Citations

• 79 Wash. 112
• 139 P. 874
• 1914 Wash. LEXIS 1160

Syllabus

<p>Sales — Fraud—Defects—Evidence—Sufficiency. A finding of fraud in the sale of a horse for breeding purposes, and want of consideration for the note given for the purchase price, is warranted, where it appears that the horse was infected with a contagious disease rendering him unfit for breeding purposes, that sores from the disease had been cauterized to conceal the cause, which was misrepresented, and that, on the return of the horse under a warranty to send another of the same breed and price, the vendors, sent a “ridgling” of another breed, which, as dealers in horses, they knew was unfit for the purpose.</p> <p>Bills and Notes — Bona Fide Purchasers — Evidence—Sufficiency. Under Rem. & Bal. Code, § 3450, placing upon the holder of a negotiable instrument the burden of proving that he acquired title in due course, it is generally for the jury to determine whether the proof was sufficient; and the question should' be submitted to the jury, notwithstanding there is no direct evidence to dispute plaintiff’s evidence, where it appears that a note procured by fraud was given as part payment for a stallion, sold in a distant state, that the indorsee of the note was a banking corporation in that state, extending large credits to the indorsers in their business, the character of which was well known to the bank, that the bank books showed that the note was held1 as collateral to a general account, that the indorsers were not insolvent, and that the plaintiff’s principal witnesses as to the good faith of the transfer were interested in the result, and one of them the person who had perpetrated the fraud upon the makers of the note.</p> <p>Sales — Action for Price — Guaranty—Defenses — Fraud — Want of Consideration. A guaranty of a stallion for breeding purposes, providing that if it did not come up to the guaranty, it was to be replaced by another, which was declared1 to be the only contract, guarantee or representation, does not preclude a defense to an action on a no