U.S. Supreme Court
Jackson v. Lawrence, 117 U.S. 679 (1886)
Jackson v. Lawrence
Submitted April 1, 1886
Decided April 12, 1886
117 U.S. 679
L made and delivered to W his promissory note for $1,300 payable in ninety days, and a deed of a tract of land absolute on its face. It was orally agreed between them that the deed was executed as security for the payment of the note, and that, if the note was not paid at maturity, W was authorized to sell the land. The note not being paid at maturity, W, with the knowledge and assent of L, sold and conveyed the land to T and applied the proceeds to the payment of the debt. After the completion of the contract and execution of the deed, but before its delivery to T, a creditor of L who had recovered judgment against him levied on this tract of land to satisfy the judgment, and caused it to be sold. The purchaser at the sheriff's sale, after receiving his deed, filed a bill in equity against the heirs and devisees of T praying to be admitted to redeem the land on payment of the note. Held:
(1) That the transaction was in equity a mortgage.
(2) That parol evidence was admissible to show when the power of sale in the mortgage became absolute.
(3) That W had an absolute power of sale when the conveyance was made to T, the execution of which carried the land free from the mortgage.
Bill in equity to redeem from a mortgage. The case is stated in the opinion of the Court. chanroblesvirtualawlibrary