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.