Marsol Credit Co. v. West Coast Grocery Co.

December 13, 1933, the West Coast

On Grocery Company, of Tacoma, entered into a contract with the Duralith Corporation for the purchase of twenty-five tons of a product known as “Duralith.” In connection with the purchase, the grocery company gave to the Duralith Corporation three trade acceptances, payable sixty, ninety, and one hundred twenty days after date. The first trade acceptance was paid before maturing. Payment on a check issued for the payment of the second trade acceptance was stopped, as the grocery company concluded it had been defrauded.

The trade acceptances were transferred by…