Union Investment Co. v. F. M. Landon Co.

This action is on a promissory note, and is the culmination of a transaction whereby the defendants bought from the named payees of said note, McLaughlin Brothers, a Pereheron stallion, named Gluton, for the sum of one thousand two hundred dollars.

The note was executed at Anderson, Shasta County, on the twentieth day of August, 1910, and made payable on the first day of July, 1912. The complaint alleges the payment of the sum of $225 thereon and that the balance, $975, with accrued interest, remains unpaid; that the defendants have refused and still refuse to pay said balance. The assignment of the note by the McLaughlin Brothers to the plaintiff before maturity for a valuable consideration is alleged, and judgment for the balance alleged to be due on the obligation with the accumulated interest is prayed for.

The answer admits that defendants executed and delivered to McLaughlin Brothers the note in suit as evidence of part of the purchase price of the stallion referred to in the complaint ; but, in support of the defense of failure of consideration, alleges that the McLaughlin Brothers sold the stallion to the defendants under the following guaranty (technically a warranty),…