Hook v. Jones

Citations

• 215 Pa. 318
• 64 A. 533
• 1906 Pa. LEXIS 789

Syllabus

<p>Contract — Collateral security — Stock as collateral.</p> <p>In an action of assumpsit it appeared that plaintiff paid to the defendant $8,000 and received from defendant two blocks of stock, one of preferred and one of common stock of a mining company. At the time of this transaction a written agreement between the parties was executed by which the defendant agreed to pay upon demand, and after the expiration of a certain period, the sum of $8,000 “upon the transfer of said preferred stock,” to defendant. It was also provided that to secure said payment defendant would give his promissory note, and that “the certificate of said preferred stock shall also be attached in the nature of collateral security to the said promissory note,” and that upon the payment of the note the said preferred stock shall be returned to defendant. The agreement made no mention of the common stock. The defendant in his affidavit of defense averred that the common stock belonged with the preferred stock, and that plaintiff was not entitled to recover unless he returned the common as well as the preferred stock. Held, that the affidavit of defense was sufficient to prevent judgment.</p>