Bills and Notes--1958 Tennessee Survey

Express Provision Concerning Negotiability. Phelan v. Phelan is the only case which has been found on the subject of bills and notes decided during the survey period. It was a suit in equity on a note in the sum of $4,000 made on April 10, 1954, by R. E. Phelan and payable to W. 0. Phelan on September 15, 1954.

The note provided that it was "non-negotiable and non-transferable." The payee, W. 0. Phelan, filed a bill to recover a decree on this note against R. E. Phelan, the maker, who, in turn, filed an answer pleading as a set-off against the note a loan of $250 he had made complainant years before and also a car note in the sum of $1976 made by W. 0. Phelan and payable to R. E. Phelan. The trial court allowed the set-off and rendered a decree in favor of complainant for the difference.