Chase & Baker Co. v. National Trust & Credit Co.
District Court, N.D. Illinois
In Equity., Suit by the Chase & Baker Company against the National Trust & Credit Company. On motion to dismiss bill. The following is a copy of the contract in question; This agreement made this ...... day of ......'19.., at Chicago, 111., by and between......of......hereinafter called First Party and the National Trust & Credit Company, Chicago, hereinafter called Second Party, witnesseth: That, for one dollar ($1.00) and other good and valuable considerations, each to the…
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In Equity., Suit by the Chase & Baker Company against the National Trust & Credit Company. On motion to dismiss bill. The following is a copy of the contract in question; This agreement made this ...... day of ......'19.., at Chicago, 111., by and between......of......hereinafter called First Party and the National Trust & Credit Company, Chicago, hereinafter called Second Party, witnesseth: That, for one dollar ($1.00) and other good and valuable considerations, each to the other paid, receipt whereof is hereby acknowledged, the parties hereto have agreed and do hereby agree as follows:…
1Opinion of the Court
MACK, Circuit Judge.
In this case, one who appears on the face of the papers to be a vendor and guarantor of open mercantile accounts and commercial paper at a discount greater than the legal interest rate is seeking to rescind the transactions and to recover back the accounts or the proceeds thereof on repayment of the purchase price with legal interest, on the ground that the transactions were ultra vires.
The basis for the charge of ultra vires is that such sales, viewed from the standpoint of the purchaser, are discounts; that discounting is a banking function; that defendant, although…
2Cases cited1 opinion
- In re American Fibre Reed Co.District Court, E.D. Kentucky · 1913
3Cited by16 opinions
- Milana v. Credit Discount Co.California Supreme Court · 1945
- In re Grand Union Co.Court of Appeals for the Second Circuit · 1914
- Capital Funds, Inc., Austin E. Gatlin and Mrs. Erma S. Gatlin v. Securities and Exchange CommissionCourt of Appeals for the Eighth Circuit · 1965
- Patterson v. WymanSupreme Court of Minnesota · 1919
- State Ex Inf. Taylor v. Currency Services, Inc.Supreme Court of Missouri · 1949
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