News and Events for Attorneys and Executives

Don’t Assume What a Court Will Assume About Your Contract

By on May 11, 2019 in Banking & Finance, Commercial, Contracts

Eric D. Mulligan of Hudson Cook, LLP writes about a case that illustrates the importance of drafting a contract that will avoid questions of interpretation by making the terms clear and apparent from the face of the text.

The case involves the default on a mobile home retail installment contract. The purchaser returned the home to the vendor with $40,000 left on the contract. Then the company sold the home for $53,000 and did not return the surplus to the buyer.

The Montana Supreme Court found that the terms of the release did not end the parties’ debtor-creditor relationship, and the purchaser was allowed to retain a surplus.

Read the article.




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