This section contains the nature of the case and procedural background.

P owned a grocery store and made prior applications for a license to sell beer. The license was denied. P talked to his neighbor, D, who indicated that he could get the license for $450. P was told by D that if he did not get a license, the $450 would be refunded. P did not get the license and sued D for the return of the $450. The only way to get a license was by state approval or by transfer of an existing license through the state but that no such transfer would be valid if it would result in a change of licensee and a change of location. D did not raise illegality as a defense. Judgment was given P and D appealed.

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