Washington Law Review


Leo D. Bloch


In the case of the National Credit Company v. Casco Company, the plaintiff's assignor sold to the Avalon Theatre Company, defendant's lessee, a neon electric sign under a conditional sales contract. To secure rental payments, defendant secured from the Theatre Company, its lessee, a chattel mortgage on all the furniture and fixtures owned by the lessee located upon the premises. Upon default in payment, defendant foreclosed the mortgage and purchased at the foreclosure sale, defendant receiving from the sheriff a bill of sale of all the property covered by the chattel mortgage, including the neon sign. Subsequently, defendant leased the building with the sign and other property to the Liberty Theatre Company of Olympia, giving the lessee an option to purchase after a certain date, if payments of rent were made as provided in the lease. While the theatre was in the possession of the Liberty Theatre Company, as lessee, defendant made four separate payments covering eleven installments due by the terms of the conditional sales contract under which the neon sign had been sold. Defendant thereafter refused to make any further payments. In this action the court allowed plaintiff to recover the balance of the purchase price.

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