GRAF V. HOPE BUILDING CORP.
171 N.E. 884 (1930)
NATURE OF THE CASE: This was a foreclosure action. Plaintiff began a foreclosure action
for failure to make the required payments on the underlying note in accordance with the
terms. The complaint was dismissed and that was affirmed.
FACTS: The executors of Graf (P) held two consolidated mortgages that formed a single
lien on real property owned by Hope (D). The notes stated that the entire balance would come
due after a 21-day default in the payment of any installment interest. Herstein was the
president and treasurer of D and he alone was authorized to sign checks on behalf of D. In
June 1927, Herstein left for Europe and a clerical assistant calculated the interest due on
the mortgages and made a nominal mistake. The error was not discovered and Herstein signed
the payment checks and went off on his trip. The error was discovered and it was found to be
$401.87. When Herstein returned from his trip, he was not informed of this shortfall and
after 21 days foreclosure was begun by P. D made a tender of the deficiency but P insisted
on the strict terms of the contract. The complaint of foreclosure was dismissed and P
appealed.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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