delivered the opinion of the Court:
This was an action of assumpsit brought to the Logan Cir-cult Court, by Ezek C. Buffum, against William B. Jones and William M. Beson, on a promissory note made to Emily Ben-net, and by her endorsed, after due, to the plaintiff. The plea was the general issue, with leave to the defendants to give in evidence all such matters as might be specially pleaded, whether set off, recoupment, payment, or partial failure of consideration.
The cause was tried by the court, and judgment for the plaintiff for the balance found due upon the note.
To reverse this judgment, the defendants appeal to this court.
At the threshold, appellee objects that the bill of exceptions does not preserve the motion for a new trial, and it is not shown that any exception was taken to the decision of the court overruling the motion, nor any allusion to it in the bill of exceptions, and insists, therefore, that the judgment should be affirmed.
The record shows exception was taken to the action of the court in its finding and in its judgment.
In Metcalf v. Fonts,
The case will be considered as though a plea of partial failure of consideration had been interposed, and in that light, the testimony offered by the defendants, the makers of the note, was perfectly legitimate. It is every day’s practice, under such a plea, to show by proof what was the real consideration of the note sued on, in order to impeach it, and such is the well settled law. Under our statute, a party may plead the note was given for no" good or valuable consideration, or that the consideration has, wholly or in part, failed, alleging wherein and to what extent. So it may he shown by parol, that the consideration for a conveyance of land, though expressed in the deed to have been received, has not, in fact, been received, as this court said, in Kimball v. Walker,
It was competent for the defendant to show for what the note was given, and then prove, that he did not receive the thing, or property, for which it was given. The note in suit, on its face, has no connection with the sale and conveyance of real estate, but under the plea it was competent for the defendant to show, it was given in part for real estate, and in part for improvements which were to be made by the vendor, on the land sold, which would make it of the value agreed to be paid. Such proof cannot be said to vary the terms of the contract •—it goes to show what the real contract was, and then it- is open to proof of failure, either partial dr total. It is in harmony with the deed. Here the proof was, that the real estate sold to defendants was of the value of $5,000, the purchase price agreed upon, with a fence upon it. of a certain value, for which the vendor had, contracted at the time of the sale to the defendants, and also the.erection of a portico of a certain value, which fence and portico were proved should have been of the value of near $400. These, with the land sold, were the consideration of the note, and the defendants had the undoubted right, under their plea of partial failure of consideration', to show the payee had failed to erect them, and their value would, be the extent of the failure of the consideration. Such evidence would neither contradict nor vary the stipulations in the note or deed.
Suppose the consideration of the note was the land, on which the vendor was to. build a house of a certain value by a certain time..gnd the house is not built? Surely, nothing can be plainer, than there would be a partial failure of consideration, to the extent of the value of the house.
Hone of the cases cited by appellee are like this. That of Farrar v. Hinch,
Suppose A sells to B a tract of land warranted to contain one hundred acres, for which he receives the note of B. On actual measurement, it is found to contain but eighty acres. The deficiency goes to the consideration of the note, and can be pleaded as partial failure. The books are full of such cases.
We think it a clear case for the appellants. Their plea of partial failure of consideration, sustained by the proof, should have prevailed, and the finding should have been for the appellants.
Appellee contends such testimony enlarges the deed, and really makes a new deed between the parties. We do not so understand it. Here a note is given for a tract of land, the vendor to place upon that land certain improvements. He fails to make the improvements, and sues upon the note, it is clear, the defendants are at liberty to show the consideration of the note has failed to the extent of the value of these improvements, and this, without touching upon that salutary rule of law on which appellee so strenuously insists. We can perceive no principle of law which is violated by receiving parol proof to show part failure of consideration of the note. We forbear any remarks upon the conduct of the payee of the note in regard to the quality of fence she erected. The one she had contracted to erect, at the time she sold to appellant, was to be of the value of $1.10 per foot; so soon as she sold, she changed the contract, by which change the fence she did erect did not cost more than 65 cents per foot, thus depriving appellants of the difference in these values.
The judgment must be reversed and the cause remanded.
Judgment reversed.
