MORTGAGES-FORECLOSURE-DEFAULT IN INTEREST

Authors

Abstract

Plaintiff was a mortgagee of certain real property. A clause in the mortgage provided that the whole amount should become due after default for twenty days in the payment of any installment of interest. Through an arithmetical error of its clerk, the defendant corporation, owner of the equity of redemption, paid $401.87 less than the amount of interest due on one installment. The total interest due was $4621.56. The clerk discovered the error and notified the mortgagee that it would be corrected as soon as the president of the corporation, who alone was authorized to sign checks, returned from Europe. But upon his return, the clerk failed to notify him of the error. On the twenty-first day after default the plaintiff brought this action of foreclosure. The defendant immediately made tender of the amount of the deficiency due, and upon its being refused, paid the money into court. Held, three judges dissenting, that the plaintiff was entitled to have the acceleration clause enforced according to the agreement and that relief would not be granted to the defendant from the effect of his unintentional, but negligent default. Graf v. Hope Bldg. Corporation (N. Y. 1930) 171 N.E. 884.

Recommended Citation

MORTGAGES-FORECLOSURE-DEFAULT IN INTEREST, 29 Mich. L. Rev. 380 (1931).
Available at: https://repository.law.umich.edu/mlr/vol29/iss3/28