Fitzgerald v. Grain Belt Realty Co.

Citations

• 106 Kan. 54
• 186 P. 739
• 1920 Kan. LEXIS 450

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Mortgages’ — Application for Loan — Mortgage Executed — Mortagor Failed to Accept Loan — Validity of Mortgage. A prospective borrower made written application to an investment company, in which he appointed it as his attorney in fact to procure a loan for him. Thereafter, he executed to that company a mortgage for the amount asked and also what was called a commission mortgage. Held, that the transaction amounted to a negotiation for a direct loan from the company; the additional mortgage was for a part of the interest, and was not rendered invalid on the theory of the company having acted in the dual capacity of lender and agent to procure a loan from itself.</p> <p>2. Same — Invalid Mortgage. In the situation above stated, the borrower failed to accept the loan and the deal fell through. Held, that, while the company might have maintained an action against him for damages for breach of contract, it could not recover upon the commission mortgage as such.</p>