Lipe v. Beech-Nut Packing Co.

Should an agreement under seal, whereby the plaintiff in words agreed to sell to defendant certain stock with the agreement on the latter’s part to resell at the same price within a specified time, be construed to be a mortgage; and may extrinsic evidence be received to aid in its construction?

In November, 1931, plaintiff was being pressed by the Superintendent of Banks of Ohio as liquidator of the Ohio Trust and Savings Bank of Toledo for payment of notes in the sum of $650,000. Being unable to meet the obligation and fearing the loss of the collateral pledged as security, he approached…