Mishawaka Woolen Mfg. Co. v. Westveer

Citations

• 191 F. 465
• 112 C.C.A. 109
• 1911 U.S. App. LEXIS 4953

Syllabus

<p>¿. Bankruptcy (§ 140*) — Property Passing to Trustee — Conditional or Absolute Sale — Law Governing.</p> <p>Whether a contract under which goods were delivered to a bankrupt was one of conditional or absolute sale is a question to be determined by the local law as established by decisions of the highest court of the state.</p> <p>[Ed. Note. — Eor other cases, see Bankruptcy, Dec. Dig. § 140.*]</p> <p>2. Sales (§ 454*) — Construction of Contract — ‘Conditional or Absolute Sale.</p> <p>A contract under which merchandise was delivered to a retail dealer provided that title should remain in the vendor until full payment was made, and that, on default or insolvency of the purchaser, the vendor might retake possession of such of the goods as should “remain in the hands of the purchaser unsold.” hut that such retaking should not affect the purchaser's liability to pay for the goods not so retaken. There was no provision that the proceeds of goods sold should he accounted for or should belong to the vendor. Held that, under the law of Michigan, the sale was not conditional, but absolute with a retention of title to the unsold goods as security, which was ineffective as against a subsequent mortgagee for value and in good faith without notice.</p> <p>[Ed. Note. — For other cases, see Sales. Cent. Dig. § 1324; Dec. Dig. § 454.*</p> <p>What constitutes a contract of conditional sale, see note to Dunlop v. Mercer, 86 C. C. A. 448.]</p>