Ballard v. MacKinac Island Hotel Co.

The United States Construction Company, Inc., installed a sprinkler system in the Grand Hotel on Mackinac Island, under a conditional sales contract, termed a lease, and under which the lessees or vendees were to pay $13,000 annually for seven years, and make an eighth payment of $10,000, and thereafter own the equipment upon payment of an additional $3,000. In case of default by the vendees the vendor retained the right to retake the sprinkler system without releasing the vendees from making the annual payments. The contract provided:

“The liability of the' lessees hereunder shall not cease…