Report No. 11
10. Instrument made without consideration.-
(1) An instrument made, drawn, accepted indorsed or transferred without consideration, or for a consideration which fails, creates no obligation of payment between the parties to the transaction.
[Section 43, para. 1, earlier half]
(2) If any such party has transferred the instrument with or without indorsement to a holder for consideration, such holder, and every subsequent holder deriving title from him, may recover the amount due on such instrument from the transferor for consideration or any party to the instrument at the time of the transfer.
[Section 43, para. 1, latter half]