Childs v. Mason
Childs v. Mason
Opinion of the Court
The plaintiff’s general demurrers to the answer alleged that it showed no legal defense to the petition, and that it attempted to set up an oral agreement contradictory to and inconsistent with the terms of the promissory notes set out in the petition.
The answer sought to set up two defenses, to wit: (1) An absolute failure of consideration, and (2) That a separate and distinct oral agreement was entered into between the plaintiff and the defendant at the time of the execution of the notes and under such agreement the plaintiff was to reimburse the defendant any amount he had paid under the notes should certain events transpire.
The notes sued on stated on their face that they were given for “value received,” but this in itself will not forbid the maker, in an action on such notes by the payee, from showing that in fact there was no consideration or that the consideration has failed, either partially or completely. See Ramsey-Fender Motor Co. v. Chapman, 46 Ga. App. 385 (168 S. E. 92), and cases cited.
The defendant relies on this case and like cases to support his contention that his plea of failure of consideration is admissible, and that he is permitted to plead the separate contemporaneous agreement whereby the plaintiff was to reimburse him the amount paid on the notes should the purchaser of the motel fail to make the first four payments on the purchase price.
Headnote 2 of Ramsey-Fender Motor Co. v. Chapman, supra, reads in part as follows: “It is also the rule that it'is never allowable, under the guise of inquiring into the consideration, to vary or contradict by parol the written terms of the promise it
The plea of failure of consideration is based on the premise that the consideration is the purchaser’s payment of the first four notes on the motel, that there was no consideration at the time the notes were signed, and since the purchaser did not make the first four payments, there has been no consideration. The defendant’s plea in this regard was as follows: “It was further verbally agreed between the plaintiff and defendant that they wouldn’t consider the transaction between your defendant and the said Willis [the purchaser of the motel] as a sale for the purpose of paying commissions to the plaintiff until the said Willis had paid the first four payments due on the note.”
The plea of failure of consideration based on these allegations is not valid inasmuch as this plea attempts to vary the unconditional promise to pay the notes by attaching thereto a condition not contained in, and contradictory to, the notes sued on.
It is well settled that the consideration for which a promissory note is given may be inquired into in an action between the original parties (Code § 14-305); however, the terms of the unconditional promise to pay may not be varied. Accordingly, the trial court erred in overruling the general demurrers to the answer, and the further proceedings were nugatory.
Judgment reversed. Quillian, J., concurs.
Concurring Opinion
concurring specially. Paragraph 6 of the defendant’s answer is as follows: “6. Defendant says further
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