Works v. Merritt

Citations

• 105 Cal. 467
• 38 P. 1109
• 1895 Cal. LEXIS 681

Syllabus

<p>Assignment of Open Account—Eight of Collection. —The written assignment of an open account vests in the assignee the legal right to collect the same, whether such assignment is in absolute ownership, or for the mere purpose of collection, either as agent of the assignor, or as security for the performance of an obligation to the assignor from the assignee.</p> <p>Id.—Effect of Assignment as Security—Power Coupled with Interest.—In ease of the assignment of an open account as security for money paid by the assignee for the benefit and on account of the assignor, the power of collection by the assignee is so coupled with an interest in the account as to prevent the assignor from doing any act to impair the rights of the assignee to collect the account for his reimbursement, and it is not competent for the assignor to deprive the assignee of this right, either by collecting the account, or by assigning it to another person, who has knowledge of the previous assignment.</p> <p>Id.—Mortgage of Personal Property — Construction of Code. — Under section 2924 of the Civil Code a mortgage may be made by a transfer of an interest in any personal property, other than in trust, made only as security for the performance of another act, and the power to mortgage personal property, without a transfer of possession, is not confined or limited to the articles enumerated in section 2955 of the Civil Code.</p> <p>Id.—Formalities of Chattel Mortgage—Validity Against Subsequent • Purchasbks and Encumbrancers.—The provisions of section 2957 of the Civil Code, declaring that a mortgage of personal property is void as against creditors of the mortgagor and subsequent purchasers and encumbrances in good faith, unless the formalities therein prescribed are complied with, are not limited to chattel mortgages upon property enumerated in section 2955, but apply generally to any mortgage of personal property; and any such mortgage is good as between the parties and as against subsequent purcha