General Mercantile Co. v. Waters

In the year 1921, the defendant Waters gave to the appellant, General Mercantile Company, a chattel mortgage covering the goods, wares, merchandise and fixtures located in a certain building, to secure the sum of $2,000. The mortgage contained the following clause:

“It is expressly understood and agreed the the mortgagor has the right to dispose of the above described goods, wares, chattels and merchandise but shall always keep goods and merchandise on hand of the reasonable market value of at least two thousand dollars ($2,000) during the life of this mortgage, and that all goods, wares and…