University of Chicago v.

Dater
277 Mich. 653, 270 N.W. 175 | 1939 | Wiest (Gel)
Facts: Michigan residents George Dater (and wife Nellie Dater) and John Price (and wife Clara Price) obtained $75k loan
in Chicago, Illinois secured by Chicago property owned by the 2 men. The checks for the loan were payable and were
cashed in Chicago. The debtor couples signed the trust mortgage and notes in MI, then delivered the documents back at
Chicago. Upon death of Mr. Price, Mrs. Clara Price became the actual and record owner of 1/2 of the mortgaged property.
Loan was not paid so property was sought to be foreclosed by University of Chicago. George Dater was held liable while
Clara Price was absolved, no COA. University of Chicago appeals.
Michigan Law: Mrs. Price has no personal liability on the note, recoverable from her separate estate
Illinois Law: The case is governed by MI law
Burr v. Beckler: wife, who was in Florida, executed a note and trust deed in FL to her husband who was in
Chicago. As the note was complete when delivered from FL, Florida law would apply, which holds that she is not
competent to enter into a contract, her note and trust deed were void.
CAB and Burr case similar:
manual delivery complete: already signed when delivered to the mortgagee
no engagement to make the loan prior to delivery (money cashed after execution of mortgage)
no advance payment of money
Issue: WoN Mrs. Price has the capacity to enter into an obligation in the state of Michigan (so as to make her liable)
Held: No. Michigan Law applies. Mrs. Price is not liable because a married woman cannot bind her separate estate
through personal engagement for the benefit of others.
Comments: University of Chicago v. Dater case is sound because MI protected Mrs. Price; IL not interested in applying its
law. The application of renvoi promoted uniformity of results in spite of discrepancies in the choice-of-law rules