W. B. King & Co. v. T. B. & Ins.

Citations

• 58 Tex. 669
• 1883 Tex. LEXIS 83

Syllabus

<p>1. Bailment.— The parties in interest may regulate in advanee the remedy which the creditor must resort, to in subjecting property pledged to the payment of the debt which it is hypothecated to secure.</p> <p>2. Same.— The holder of property pledged for the payment of a debt may sell it, after reasonable notice, at pubHc auction to liquidate the debt, unless the character of the property be such as to raise the presumption that the parties intended that it should be used in some other way to raise money if necessary; as in the case of a bill of exchange or promissory note soon to mature.</p> <p>3. Bailment — Pact case — Pleading.— See opinion for allegations in an answer held not sufficient to show a waiver on the part of the pledgee of his right, to sell, in default of payment, bonds hypothecated to secure the debt.</p> <p>4. Pleading.— When no time is stipulated for the payment of debt secured by a pledge of property, the law will, in the absence of something from which a contrary presumption would arise, presume that the payment is to be made on demand.</p> <p>5. Same.— The holder of property hypothecated for debt, having a legal right to sell on notice after demand, no time being fixed for payment, may sell it at public auction, and is under no legal obligation to wait until a depressed money market is better in order to obtain a higher price for the thing pledged. The parties will be presumed to have had in view the risk of fluctuation in the market when the pledge was made.</p> <p>6. Pleading.— See opinion for pleading alleging the violation of a contract with regard to the rate of interest to be paid on a debt secured by a pledge, to which a demurrer was improperly sustained.</p>