State Codes and Statutes

Statutes > Connecticut > Title42a > Art003 > Sec42a-3-408

      Sec. 42a-3-408. Drawee not liable on unaccepted draft. A check or other draft does not of itself operate as an assignment of funds in the hands of the drawee available for its payment, and the drawee is not liable on the instrument until the drawee accepts it.

      (1959, P.A. 133, S. 3-408; P.A. 91-304, S. 45.)

      History: P.A. 91-304 entirely replaced former provisions re lack or failure of consideration with provisions re liability of a drawee on unaccepted draft, a restatement of Sec. 42a-3-409(1), revised to 1991.

      See Sec. 42a-3-303(b) for successor provisions to Sec. 42a-3-408, revised to 1991, re consideration.

      Annotations to former statutes:

      (1958 Rev., S. 39-25): Nonnegotiable instrument does not import consideration. 73 C. 572. Check does. 83 C. 528. Cited. 85 C. 155; 105 C. 79. Promise of husband's creditor to forbear suit, made to wife at her request, is a sufficient consideration for her note for amount of debt. 93 C. 359. Furnishing supplies to builder is good consideration for owner's acceptance of nonnegotiable order on him for supplies previously furnished. Id., 401. In action by holder of a negotiable instrument, defendant has burden of showing lack of consideration except as provided in section 39-60. 102 C. 624.

      (1958 Rev., S. 39-29): Where failure of consideration is due to act of maker, he cannot set it up in defense. 73 C. 144. Seal does not preclude defense. 81 C. 678. Note given in part payment for construction of building is wanting in consideration, if contractor abandons building and nothing is due him. 82 C. 244. Acceptor of bill of exchange cannot show want of consideration as a defense. 93 C. 400. If face of note exceeds amount actually paid, recovery as between parties must be limited to that amount. 126 C. 556.

      Annotations to present section:

      Instrument negotiable in form is deemed prima facie issued for valuable consideration and burden of proving absence or failure of same is on defendant. 149 C. 558. Cited. 151 C. 566. Party asserting lack of consideration has burden of establishing it by preponderance of the evidence. Id., 606. Cited. 240 C. 10.

      Cited. 1 CA 162.

      Broker is entitled to his commission when he has produced customer ready, able and willing to purchase; hence plaintiff's threat he would not go through with sale and defendant broker would lose her commission unless she signed note he is now suing her on, was no consideration for note. 4 Conn. Cir. Ct. 665.