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Abstract

The case of University of Chicago v. Dater, recently decided by the Michigan Supreme Court, contains interesting and unusual problems in the field of conflict of laws. The University of Chicago had agreed to loan money to a Michigan resident, to be secured by Chicago realty. The note and trust mortgage were sent by plaintiff to a Michigan bank, as agent, which procured the signatures of defendant and her husband, and sent the papers back to plaintiff's agent in Chicago. Some question as to title to the land arose, followed by further negotiations, and nearly a month after the papers reached Chicago, the title having been cleared, the money was paid to the makers in Chicago. The obligation of the note was also payable in Chicago. In a suit against the wife for a deficiency judgment, it was held that either Michigan or Illinois law governs the capacity of the married woman to contract in such a case, that by Michigan law defendant would not be bound, and that in such a case Illinois law would apply the Michigan law as to capacity, so defendant is not bound on either supposition. Justice Sharpe dissented on the basis that the contract should be held an Illinois contract, and should be governed by the Illinois law, by which a married woman has full capacity to contract. Butzel, J., concurred with Sharpe, J., in result, analyzing the majority opinion as applying Illinois law to a question of "qualifications," which Justice Butzel considered should be controlled by Michigan law.

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