U.S. Supreme Court
Embrey v. Jemison, 131 U.S. 336 (1889)
Embrey v. Jemison
Argued April 3-4, 1889
Decided May 13, 1889
131 U.S. 336
ERROR TO THE CIRCUIT COURT OF THE UNITED
STATES FOR THE EASTERN DISTRICT OF VIRGINIA
A contract for the purchase of "future delivery" cotton, neither the purchase nor delivery of actual cotton being contemplated by the parties, but the settlement in respect to which is to be upon the basis of the mere "difference" between the contract price and the market price of said cotton futures according to the fluctuations in the market, is a wagering contract and illegal and void as well under the statutes of New York and Virginia as generally in this country.
The original payee cannot maintain an action upon a note the consideration of which is money advanced by him upon or in execution of a contract of wager, he being a party to such contract or having directly participated in the making of it in the name or on behalf of one of the parties.