BILLS AND NOTES - EFFECT ON NEGOTIABILITY OF RECITAL OF TRANSACTION GIVING RISE TO NOTE

Authors

Michigan Law Review, University of Michigan Law School

Abstract

For Mighty King #14468 Saddle Horse was inscribed on the face of the note upon which the plaintiff, the holder of the note, brought suit against the maker. At the trial it was discovered that the payee of the note still held title to the horse, and the sale for which the note was given was a conditional one depending on whether or not one hoof of Mighty King healed. The plaintiff had been given no notice of this condition. Held, the mere statement of the consideration giving rise to the note did not serve as notice of the conditional sale nor have the effect of destroying its negotiability. Anderson National Bank of Lawrenceburg, Ky. v. Jacobson, 305 Ill. App. 169, 27 N. E. (2d) 296 (1940).