Thomas, J.
The case came up for hearing upon the bill, answers, exhibits and proofs. The plaintiff moved that the cause should be sent to a master to take the accounts. To this the defendants objected, on the ground that there were questions of [291] law which might finally dispose of the cause, and render an account unnecessary. The parties then, by consent, discussed certain legal questions with the evidence applicable thereto. And thereupon the presiding judge reserved several questions for the opinion of the whole court, upon the decision of which the court are to enter such order or decree as equity may require, dismissing the bill, ordering further proceedings thereon, or sending the same to a master to state the facts and an account, if they shall deem it proper. In order, however, to a correct understanding of the questions submitted, it will be necessary to state, with such "brevity as we may, the substance of the bill and answers, and some of the leading facts upon which they are to be determined.
The bill, as amended, (of which no abstract is given,) alleges, in substance and so far as is material to the determination of the questions before us, that on the 3d of October 1842 George W. Coffin, land agent of the Commonwealth, in his capacity as such, made a contract with the defendant Veazie, for the sale of an undivided half of a township of land in Maine; that Veazie then paid to Coffin as such agent $2208, and gave him three notes payable to the treasurer of the Commonwealth, each in the sum of $2944, one payable October 1st 1844, one October 1st 1846, one October 1st 1848, as the consideration of the purchase ; and that on the 11th of September 1843 Veazie assigned this contract to Coffin and his heirs and assigns, to secure the payment of a note of $2392, bearing date May 15th 1843, and payable on the 15th of November then next. This assignment was as follows.
“ Know all men by these presents that I, John W. Veazie of Boston, in the County of Suffolk and Commonwealth of Massachusetts, in consideration of two thousand three hundred and ninety two dollars, to me in hand paid by George W. Coffin of said Boston, Esquire, the receipt whereof I do hereby acknowledge, have given, granted, sold, assigned and set over unto the said George W. Coffin, his heirs and assigns, all my right, title, interest and estate in and unto a township of land numbered fourteen, in the sixth range of townships, west of the east Ike [292] of the State of Maine, situate and lying in the County of Pe* nobscot. Provided, however, if the said Veazie, his heirs, executors, administrators and assigns, shall well and truly pay a certain note of hand signed by said Veazie, for the sum above named, on or before the fifteenth day of November next, then this obligation is to be null and void, otherwise to remain in full force and virtue. In witness whereof I have hereunto set my hand and seal this eleventh day of September eighteen hundred and forty three. John W. Veazie. [Seal.]
“ Witness : William A. Wells.”
The bill then alleges that on the 21st of September 1843' Veazie assigned and conveyed his remaining interest in said contract to Coffin ; that this last assignment was in fact made to Coffin -at the request and for the benefit of Samuel Smith, Veazie having previously sold to Smith his interest in the contract; that such assignment was made directly to Coffin under an arrangement between Smith and Coffin, by which the same was to be held in trust by Coffin for Smith, subject to the payment of the sums and notes in the agreement mentioned, among which was a note of Smith, of even date with the assignment, for $4330.28, payable to Veazie or his order on the 15th of August 1844, which note had been indorsed to Coffin, and was then held by him ; and that by force of these assignments Coffin, in his individual capacity, became the owner of the contract and substituted in the place of Veazie. That contract was as Follows:
“ Know all men by these presents that I, John W. Veazie of Boston, in the County of Suffolk and Commonwealth of Massachusetts, hereby sell, assign and transfer to George W. Coffin of Boston, county and state aforesaid, for the consideration and upon the conditions hereinafter expressed, all the remaining interest I have in and to the land within described; hereby fully empowering said Coffin to do in the premises whatever I might or could do by virtue of my title to the within named land. This assignment is made subject to the payment of my notes given to the State of Massachusetts for the same, as also to the payment of my note given to G. W. Coffin as [293] within mentioned ; also subject to the payment of Samuel Smith’s note to me, of even date, payable the 15th day of August next, for forty three hundred and thirty dollars and twenty eight cents, with interest. In witness whereof I have hereunto fixed my hand and seal this twenty-first day of September, a. n. 1843. John W. Veazie. [Seal.]
“Attest: John Bordman.
“ It is understood that if the aforesaid note of forty three hundred and thirty and j5B dollars is not paid at maturity, this assignment is to be null and void. John W. Veazie.
“ Attest: John Bordman.”
There seems to be no new consideration for this assignment but the note of Smith. The assignment is made incumbered by the debt to the Commonwealth, by the mortgage to Coffin, and upon the condition that Smith pays his note. If that is not paid, the assignment of Veazie’s equity is to be null and void. Coffin would not gain an absolute title till the Smith note was paid.
The bill then alleges that on or about the 31st of August 1844, Coffin, by an instrument in writing, agreed to assign to Smith the contract for the sale of the half township, and for further assurance delivered to Smith the original contract of the Commonwealth, with the assignment thereon. The agreement of August 31st was as follows :
“ Know all men by these presents that I, George W. Coffin, of Boston in the Commonwealth of Massachusetts, in consideration of Samuel Smith, of Bangor and State of Maine, having given to me his promissory note of hand for the sum of four thousand nine hundred dollars, of even date herewith, payable in twelve months, with interest, I hereby agree to assign to said Smith, or his assigns, the annexed bond, the same having been assigned to me by John W. Veazie. It is provided, how ever, that said Smith, or his assigns, shall pay the note above named at maturity, and shall also pay at the treasury of Massachusetts the notes within mentioned, less the proceeds of stump-age two years past. Boston, 31st August, 1844.
George W. Coffin. [Seal.]
“ Witness: Edward A. Snelling.”
[294] The bill further alleges that between October 3d 1843 and August 31st 1844 Coffin had licensed the cutting of timber on said half township, and had received divers sums for stumpage, (the details of which it is not necessary to state;) that before said 31st of August the note of Smith to Veazie, which Veazie had indorsed to Coffin, matured, and Smith desiring to pay or adjust it, an arrangement was made by which Smith paid to Coffin the sum of $2600 in cash, and gave a new note (for the note of $4330.28, adding thereto interest and five per cent, commission, amounting to $4935, and paying $35 cash), for $4900, upon which Coffin gave him the agreement of August 31st; that Smith being unable to pay the $2600, applied to the plaintiff for aid, requesting him to pay the sum of $2600, and to take an assignment of Smith’s rights under the proposed arrangement, exhibiting to the plaintiff at the time an account of the stump-age which had been rendered by Coffin ; that the plaintiff did advance the $2600, and that Smith made to him an assignment of Coffin’s agreement on the 2d of September 1844, in these words:
“ Boston, September 2d 1844. For a valuable consideration paid me by David Pingree of Salem, 1 hereby assign to him all my interest in the within bond and land therein mentioned, as also the annexed bonds, hereby fully empowering said Pingree to do in the premises all matters and things which I might or could do by virtue of the same. Samuel Smith. [Seal.]
“ Witness : Mark Haskell.”
The bill alleges that at the same time Smith delivered to the plaintiff the instruments before set forth ; and that said assignment was for the plaintiff’s own sole use; that Coffin had notice of this assignment to the plaintiff, and of the delivery of the instruments of title, and by force thereof became the trustee of the plaintiff and bound to account to him; that since the title of the plaintiff has accrued, Coffin has received from the land, by way of stumpage, &c., more than enough to pay the notes mentioned in the contract of August 31st, and is bound to apply such proceeds to the payment of those notes, to account to him for the balance, to assign tc the plaintiff the original contract of [295] the land agent, free from all incumbrances, and to cause the half township to be conveyed to the plaintiff; that Coffin, after the note of Smith became due, knowing that upon a just application of proceeds, past and future, from the land, said notes would be paid and extinguished, treated with the plaintiff in relation to the plaintiff’s interest in the land, agreed to collect the stumpage and apply it upon the notes, and gave the plaintiff to understand that, and caused him to act as if his rights under the contract were unimpaired. The bill insists that if any part of the conditions of the contract had not been complied with in due season, such compliance, in point of time, was waived by Coffin; and alleges that Coffin never has accounted, though often requested; that the plaintiff has been at all times seeking, and now offers, to perform what he was bound to do under said contract; that between the 15th and 21st of January 1851 he applied to Coffin to make up and render his account, and offered to pay all sums which should be found due, and demanded a specific performance of the agreement made by Coffin with Smith, and by Smith assigned to the plaintiff; that Coffin and Jewett & March pretend that on or about the 30th of October 1849 Coffin, in his individual capacity, assigned and conveyed to Jewétt & March the original contract of the land agent, for a valuable considera tian, and without notice of the rights of the plaintiff, and after-wards, as land agent, conveyed to Jewett & March the said half township, as the assignees of the contract of Veazie; but the plaintiff says that no such assignment was ever made, or if made, ever delivered ; that Jewett & March never paid anything therefor ; and that long before any such pretended sale and conveyance Jewett & March well knew the rights of the plaintiff in the premises.
The prayer is for an account and for a specific performance of the agreement made by Coffin with Smith, for the assignment of the original contract, for a conveyance of the half township free from incumbrances, and for general relief.
The answer of George W. Coffin, in substance and so far as is material to the determination of the questions reserved, to the original bill and the amended bill is that on the 3d of October [296]*2961842 he, as land agent, made a contract with Veazie for the sale of the whole township; that shortly after its delivery, at the request of Veazie, two agreements, each for one half the township, were substituted, one to Veazie, being that set forth in the bill, and one to G. Winthrop Coffin; that these two instruments were however dated as of October 3d; that it was agreed between Coffin and Veazie that no deed should be given of either half till the terms of both were complied with. Coffin admits the assignment of the 11th of September 1843, to him as an individual, to secure the payment of $2392. He admits the assignment of Veazie to him, of the 21st of September, of his remaining interest in the half township, with the agreement that the assignment should be void unless the note of Smith should be paid at maturity.
In his answer to the amended bill, Coffin says he does not know, but believes, the note of $4330.28 was given by Smith to Veazie for his interest in the contract, and the note was indorsed by Veazie, and delivered to him with the assignment; but he denies that there was any arrangement by which the assignment was to be held in trust for Smith, other or further than this, that he understood that if Smith, or any óne for him, should pay at maturity the note of $4330.28, he was to hold the assignment for the benefit of Smith. Coffin also says that by force of the two assignments he, in his individual capacity, became substituted to the rights of Veazie.
Coffin admits that on the 31st of August 1844 be made the written agreement set forth in the bill with Smith, and delivered to him the original contract. He says that the payment of the note of $4900 at maturity was regarded by him as of the essence of the contract.
In his answer to the amended bill, he gives this statement of the origin of this agreement: The note of $4330.28 was not paid at maturity, was protested, and Veazie’s. liability fixed. Smith applied to Coffin for aid to pay the note and relieve himself from the forfeiture from nonpayment thereof. After negotiation, an arrangement was made by which the amount due on the note foi $2390, which was cancelled, and the amount due on the [297] note for $4330.28 were added together, with a small commission for services, and a note for $4900, payable in twelve months, given, and the balance paid in cash ; Smith’s right in the land was to cease if the note was not paid at maturity, and Smith whs to abandon all other rights to the land and the contracts and assignments, and confine himself to the claim under the contract of the 31st of August. That contract, this answer avers, was made after repeated declarations by Coffin that he would not open to Smith an unlimited right to redeem ; but he would give to Smith the right to take Coffin’s position as owner of the land and contracts, provided he paid the note at maturity; if not, his relation to them should be determined; and that this was well understood between him and Smith. It then avers that the note of $4900 has never been paid.
Coffin says he has no knowledge of the assignment by Smith to the plaintiff, but believes it was made; has no knowledge whether the plaintiff paid Smith any consideration for such transfer and assignment, nor any definite or certain belief on the subject, and leaves the plaintiff to prove it. In the answer to the amended bill, he says he does not believe the money was advanced to Smith upon any statement or memorandum of account made by him, or upon anything said, done or written by him. He then avers that upon the failure to pay the note of $4900, all Smith’s title, legal or equitable, became extinguished, but that, as matter of favor, he sent him a letter of March 19th 1846. He gives the letter and the answer, as follows:
“ Boston, 19th March 1846. Sam’l Smith, Esq. Dear Sir, The balance due me on your order given for the purchase of the V x W logs is of long standing. Also your note for $4900, due September 1, 1845, ought to have been paid long ago, but yet remains unsettled. I have now an opportunity of remunerating myself by a sale of No. 14 R. 6, but I had rather that you would take up the obligations and manage the lands yourself. Will you attend to this without delay as something must be done shortly. Your obedient servant, Geo. W. Coffin.”
“ March 28th 1846. Mr. C., I received your note a day or two since, and named to Mr. Pingree the $4900 note was due. I had [298] supposed it paid, as I assigned the bond to him the day I took it, and have not heard it spoken of until your note; he will attend to it. He observed he intended to have all the sums due on 10, 11 and 14 paid up as soon as the stumpage was paid in, and was in hopes the surplus on 14 would pay the $4900 note.
“ Yours, S. Smith.”
Coffin denies that he had notice of the assignment to the plaintiff when it was made; and avers that this letter was the first notice he had of it, except that in a casual conversation with Smith he told Coffin that he had assigned all his property to the plaintiff.
In his answer to this and the amended bill, Coffin goes into a detailed statement as to stumpage. He admits the receipt of small sums, but denies that he held them in trust for the plaintiff, or that he, as land agent or as an individual, was bound to collect or apply the stumpage upon the notes. The statements as to the amount of stumpage are not material in this stage of the cause, but will become so if the case is sent to a master. He admits the plaintiff’s demand for an account, but avers that it was not made until after he entered into an agreement with Jewett Si March. He says he has been informed and believes that in January 1846 Jewett & March made a contract for the purchase of the half township which, as land agent, he had agreed to convey to G. Winthrop Coffin ; that Jewett Si March, upon information and belief, on or before October 30th 1849, were entitled to a conveyance of that half; that he then made a deed of the entire township, as land agent, to Jewett Si March, retaining the deed in his own possession, expecting they might buy his half, or, if they should not, would hold it in trust for him ; that in October 1850 he concluded a bargain for the sale of this half to Jewett Si March for $14,500, and on the 4th of December 1850 gave to Jewett Si March a written obligation in these words :
“ Know all men by these presents that whereas George K. Jewett and Leonard March, of Bangor, County of Penobscot, State of Maine, have purchased of me, George W, Coffin, of Boston, State of Massachusetts, one undivided half of township [299] number fourteen in the sixth range of townships west of the east line of the State of Maine, for the sum of fourteen thousand five hundred dollars; and whereas they also are indebted to me for a further sum for stumpage, &c., cut on same town, as appears by account rendered, making in all the sum of sixteen thousand dollars; and whereas there is already a deed made and executed from the Commonwealth of Massachusetts to said Jewett & March of the whole of said township No. 14, 6th range, dated 30th October 1849, and recorded in the books of the land office — which said deed is now in my hands — ■ now it is agreed between said parties that the said G. W. Coffin shall hold said deed in his hands as security for the following conditions of payment of the above named sixteen thousand dollars, viz.: Said Jewett & March shall give said Coffin their draft on C. H. Hamm & Co., of Boston, dated December 2d 1850, and payable at either bank in Boston in three months from date, for the sum of two thousand dollars; also one other draft on same firm, of same date, payable in four months from date, at either bank in Boston, for the sum of two thousand dollars; also shall give their three several notes of hand dated at Boston, November 1st 1850, each for the sum of four thousand dollars, and payable to said Coffin, each in one, two and three years from said date, with interest annually. And the said Coffin, hereby acknowledging the receipt of the above described notes and drafts, amounting to the gross sum of sixteen thousand dollars, agrees, for the above consideration, that if said drafts are paid at maturity, and if the three notes of hand are seasonably paid, according to the tenor thereof, that he will deliver up to the said Jewett & March, or their assigns, the aforesaid deed of the Commonwealth to Jewett, for their sole use and benefit. It being also understood and agreed that, should any timber or logs be cut on said town before the notes are due, that the sum of $1.50 per ton, or $3.00 per thousand feet, stumpage, shall be paid and indorsed on said notes. It is also understood that said Jewett & March own the other undivided half of the said township, No. 14, 6th range, having bought the same of said Commonwealth, and paid for it in full.
16 Boston, 4th December 1850. George W. Coffin.”
[300] Coffin says that Jewett & March paid the two drafts in said instrument mentioned, amounting to $4000; but that the three notes, amounting to $12,000, remain unpaid. He admits that he has not delivered any deed of said township, unless the instrument of December 4th shall be so regarded. Denying the right of the plaintiff to an account, he presents one of said half township with himself, excluding the payments and notes made to him by Jewett & March for the purchase money.
He admits the receipt of a letter from the plaintiff, demanding an account, dated January 16th 1851. He believes that Smith has an interest in Pingree’s pretended claim, and avers that at the most Pingree’s rights under the assignment are such as he would have in taking the same with full knowledge of all things set forth in the answer. He denies combination, &c.
The answer of Jewett Sc March denies any knowledge or belief of the agreement and assignments set forth in the plaintiff’s bill, except such as is derived from the plaintiff’s bill, or of the stumpage received by Coffin, or of the demand for an account and the refusal of Coffin.
They admit that in 1843 and 1844 they lumbered upon the township, under an agreement with Coffin, but aver that they had no knowledge that the plaintiff had or claimed to have any title thereto. They then allege the following facts :
On or about the first of January 1846 they, as partners under the firm of Jewett & March, purchased of G. Winthrop Coffin and held one undivided half of this township, for $30,000. In the winter of 1848-9 they lumbered by mistake on township 14, 6th range, to the value of $300 or $400, and paid Coffin one half the amount; in 1849-50 to the amount of $9000, one half of which they adjusted with Coffin. In the fall of 1849 March had a conversation and negotiation with Coffin in relation to the purchase of this half township, but did not purchase. In October 1850 March, acting for the firm, had a conversation and negotiation with Coffin as to a purchase, and on the 4th of December 1850 agreed to buy of him, as an individual and not as land agent, the half township for $14,500; Coffin agreeing, as part of the contract, to relinquish his claim of $4500 for lumbering [301] operations in the winter of 1849-50. They were indebted to Coffin in $2500; they have paid $4000 — they do not say when —leaving $13,000 unpaid. They say that before this 4th of December 1850, when the agreement was made, they had been informed that the plaintiff pretended to have some claim to this half township; they are unable to state when ; but the information did not disclose the nature or character of the claim made by the plaintiff. When they made the purchase through March, on the 4th of December 1850, they stated through March that they had heard that Pingree claimed some interest in the half township, to which Coffin replied that Pingree had no title, and that he was under no obligation to convey to Pingree, and that the $14,500 would not reimburse him for the cost of the half township to him. Before the 4th of December 1850 Coffin informed March that he had some time before executed as land agent a deed to Jewett & March of the whole township. This deed was executed on the 30th of October 1849. These defendants further say that on the 4th of December 1850 Coffin agreed that upon the payment of the $16,000, he would deliver said deed to the defendants; that Coffin had paid to the State the entire purchase money, according to the terms of the agreement which he, as land agent, had made with Veazie, and which Veazie had failed to comply with ; that the defendants lumbered upon said township in the winter of 1850-51, but their operations have not been completed, and they cannot state the account. The deed was in fact delivered by Coffin to Jewett & March just before the hearing.
In their answer to the amended bill, Jewett & March say they were, and ever since have been, citizens and residents of Maine; that no service was ever made upon Jewett except by leaving a copy of the subpoena with March ; that.the land is in Maine, and that the court has no jurisdiction over the defendants upon the subject matter of the bill; and they claim the same benefit as if they had pleaded the same.
They further say that they have been informed, they do not state when, that at some time Smith made a contract with Coffin for the purchase of one undivided half of township 14, [302] range 6, .upon certain terms and conditions, for his own benefit, which these defendants have been informed and have understood that Smith did not perform. They have no knowledge or information as to the other matters stated, and leave the plaintiff to prove them. They insist that the plaintiff has no right against them, and that they are not bound to account.
To these answers a general replication was filed.
The questions reserved by the presiding judge were:
“ First. Whether the contract made by Coffin with Smith, dated August 31st 1844, is to be construed as a contract of sale or as a mortgage ?
“ Second. Whether the court will entertain jurisdiction against Jewett & March ?
“ Third. Whether, as it was "contended by the defendants, (and if the point be open to them on the pleadings,) the several contracts of Coffin with Veazie and with Smith, under which the plaintiff claims, are invalid as against public policy, and incapable of being enforced in a court of equity, upon the ground that Coffin, at the time of making the same, was the land agent of Massachusetts, or that Jewett & March were purchasers for value without notice, or upon the ground that the remedy, if any, is against Coffin for not assigning the bond, in which Jewett & March have no interest or agency ?
“ Fourth. Whether the court will permit the defendants Smith and Veazie to be examined as witnesses on behalf of the plaintiff ?
“ Fifth. Whether, if the bill is dismissed as to Jewett & March, such dismissal shall operate as a bar to the proceedings against Coffin ? ”
Some of these questions are preliminary in their character, and may first be examined.
1. Whether the court will permit the defendants Veazie and Smith to be examined as witnesses?