Opinion
June Term, 1876.
Illegal Contract — New Bond.
1. A contract, void for illegality of consideration, secured by a bond to pay money, is not cured by the substitution of a new bond in place of the old one, for the same of some other amount, between the same parties.
2. Nor does the adding of a mortgage as an additional security make any difference.
APPEAL from Kerr, J., at Spring Term, 1876, of ALAMANCE.
The following are substantially the facts as agreed:
The plaintiff loaned the defendant, S. P. Holt, fifteen hundred dollars in Confederate money, during the late war in 1863, with which to hire a substitute to go into the Confederate army in place of said defendant, the plaintiff knowing the use to which said money was to be applied; and the defendant gave his bond for that amount to the plaintiff. Some time after the close of the war the defendant S. P. Holt and the plaintiff agreed to a scale of said bond, and the defendant gave the plaintiff a new bond for eight hundred dollars, taking up the original bond for fifteen hundred dollars. On 14 December, 1870, the defendant S. P. Holt and the plaintiff agreed to a compromise of the eight hundred dollars bond previously given, and the four bonds sued on and described in the plaintiff's complaint were executed by said S. P. Holt, and at the same time the mortgage in said complaint described was executed and delivered by said defendant to said plaintiff, to secure the ultimate payment of said bonds, as was so agreed upon the compromise of the said eight hundred dollar bond, and that the payment upon the said four bonds as set forth in the complaint had been made by the defendant S. P. Holt, and that all of said bonds were due before the institution of this action.
Upon these facts his Honor held that the bonds sued on and the mortgage to secure them were founded upon an illegal (189) consideration, and that the plaintiff could not recover. To this the plaintiff excepted.
Judgment for defendant for costs, from which judgment plaintiff appeals.
Parker for appellant.
Boyd and Tourgee, contra.
A contract void for illegality of consideration secured by a bond to pay money is not cured by the substitution of a new bond in place of the old one, for the same or for some other amount between the same parties. Nor does the adding of a mortgage (190) as an additional security make any difference.
There is no error.
PER CURIAM. Affirmed.