Mohawk National Bank v. Chalifaux

The facts of the case are simple. The defendant purchased a 1959 auto from plaintiff’s assignor under a retail installment contract. At the time of the sale there existed an outstanding chattel mortgage against the automobile which had been filed in the assignor’s county of residence. Thereafter the conditional sale contract was assigned to plaintiff who paid $3,000 for it. Some three weeks thereafter the defendant received notice of the existence of the chattel mortgage. Later the plaintiff sued the defendant to recover money damages *988for breach of the assigned contract. By the terms of the…