New York Court of Appeals

William Bookstaver v. . Benaiah G. Jayne

February 16, 187560 N.Y. 146

Summary

The Court of Appeals held that evidence showing the purpose and consideration of a promissory note is admissible to demonstrate a failure of consideration, and that an indorser who is a party to the underlying contract may assert that failure as a defense. Because the trial court erred in excluding this evidence, the judgment was reversed and a new trial was ordered.