Page:North Dakota Reports (vol. 48).pdf/227

 reason of the note and interest thereon not having been paid at maturity. The payee named in the note sold, assigned, indorsed, transferred, and delivered the note to the plaintiff, after the maturity of it.

It is admitted that plaintiff is the owner and holder of the note, and that, in its hands, it is subject to all the equities and defenses as if the litigation were between the original parties.

The defendants in their answer admit the execution and delivery of the note and mortgage, and made other admissions in their answer, not material here to notice, and, in addition thereto, interposed a general denial.

Defendants, further answering interposed a defense of breach of warranty. It is as follows:

"For a further answer to said complaint and as and for a defense to said action and as and for an offset and counterclaim, the defendants allege:

"That immediately prior to and on the 8th day of November, 1917, the date upon which the said note was made and delivered, the defendants were seeking to purchase a herd of pure-bred registered cattle, with the intent, object, and purpose of establishing a stock breeding and stock sales herd of pure-bred registered cattle near the village of Hunter, in the county of Cass and state of North Dakota.

"That W. H. Walters, the original payee named in said note, then had and exhibited to the defendants at Pipestone, Minn., the said cattle mentioned and described in paragraph 4 of said complaint, with a view and object of selling them to the defendants for use in establishing and conducting such breeding and stock sales herd, said W. H. Walters having been informed and then well knowing the intent, object, and purpose of the defendants as hereinbefore alleged, and said W. H. Walters, in order to sell to defendants said cattle and with the intent and purpose of procuring and inducing them to purchase the same from him, represented, stated, and warranted that the said cattle were in good condition and in perfect health, and were free from disease, and were in every way all right, and that they were in all respects suitable for the establishment and conducting of such a herd and for the purpose of breeding pure-bred Aberdeen Angus registered cattle and selling the same to persons desiring to purchase cattle of such character and description for breeding and sales purposes.

“That the defendants, believing and relying upon such representations, statements, and warranty of the said W. H. Walters, and being induced