Furnace Co. sued Baker, who defended by claiming failure of consideration. Is this a good defense…
Contractor contracted with Betty Baker to install a new furnace in Baker’s business. Baker wrote a check for $8,000 (the price quoted by Contractor) payable to Furnace Co., which Contractor delivered to Furnace Co. in payment of his own debt to it. Furnace Co. knew nothing of what went on between Contractor and Baker. When Contractor did not complete the job, Baker stopped payment on the check. Furnace Co. sued Baker, who defended by claiming failure of consideration. Is this a good defense against Furnace Co.?
