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Assumption Of Liability By Implication, Leo D. Bloch

Washington Law Review

In the case of the National Credit Company v. Casco Company, the plaintiff's assignor sold to the Avalon Theatre Company, defendant's lessee, a neon electric sign under a conditional sales contract. To secure rental payments, defendant secured from the Theatre Company, its lessee, a chattel mortgage on all the furniture and fixtures owned by the lessee located upon the premises. Upon default in payment, defendant foreclosed the mortgage and purchased at the foreclosure sale, defendant receiving from the sheriff a bill of sale of all the property covered by the chattel mortgage, including the neon sign. Subsequently, defendant leased the …