Schwabacher Hardware Co. v. Miller Sawmill Co.

Foss, indebted to the hardware company, drew-it a bill of exchange on the sawmill company, which accepted thus:

“Accepted payable out of proceeds of Northwestern Fisheries Co. contract when same becomes available.”

The fisheries contract was one in which, supplying Foss with material, the sawmill company had become his creditor in a large amount, whence it contends, notwithstanding this acceptance, it had a right to repay this previous debt first out of subsequent receipts. In a word, “proceeds” meant net proceeds, and “available” available to drawer upon a whole accounting.

Foss was so…