Alderman v. Davidson

In this action to foreclose real property, the issue presented is whether seller’s repeated acceptance of late installment payments on the principal of a note constitutes a waiver of seller’s right to insist on buyer’s timely payment of taxes on the property to the local taxing authority. The trial court held that such repeated acceptance of late payments does constitute a waiver; it therefore dismissed the foreclosure action. On an appeal by seller, the Court of Appeals reversed, holding that, because seller did not accept late payments after becoming aware of the default in the payment of…