Castle v. Logan

Citations

• 140 F. 707
• 72 C.C.A. 201
• 1905 U.S. App. LEXIS 3954

Syllabus

<p>Bills and Notes — Note Payable on Conditions — Construction of Conditions.</p> <p>Citizens of a city, through plaintiff, as trustee, donated conditionally, a sum of money to defendant, for which he gave his note, payable in 10 years, but subject to certain conditions, evidenced by a written contract attached, which provided, that defendant should reconstruct and operate a manufacturing plant in the city and employ therein a number of workmen, estimated at from 40 to 75; that he should be credited on the note with 10 per cent, of the amount paid out in salaries and wages in the business, and should continue to operate the plant in good faith until the note was fully paid in such manner. It further provided that, in the event of the “abandonment or permanent stopping of the operation of said plant” before the note was so paid, any balance due thereon should be repaid and should become at once due and payable. Held, that the stopping of the operation of the plant, continuing for more than a year, during which time the workmen were not employed by defendant, and without any definite intention of resuming work, was an abandonment and permanent stopping within the meaning of the contract, and that by its terms the balance due on the note became at once collectible.</p>