165 Mass. 402 | Mass. | 1896
1. A conveyance, absolute in terms, of real or personal property, may be shown in equity by paroi evidence to have been taken as collateral security. Campbell v. Dearborn, 109 Mass. 130. Reeve v. Dennett, 137 Mass. 315. Minchin v. Minchin, 157 Mass. 265. But in the present case the defendants gave a receipt specifying the terms on which they received the conveyance of the yacht, viz.: “We are to credit Stevens five hundred dollars on our account against Stevens and Old-ham.” This was an agreement by the defendants to take the yacht in satisfaction of their account to the amount of five hundred dollars, and it was not open to the defendants to show by paroi evidence that the agreement was something else. Langdon v. Langdon, 4 Gray, 186. Squires v. Amherst, 145 Mass. 192, and cases cited.
2. The other question is whether the defendants are bound to account to the plaintiffs for the full amount of the Bohndell note. The master found that it was not to be credited by the defendants as cash, at its face value, but that it was taken as security, and to be charged back if not paid. In other words, it was received in pledge, or as collateral security. The au
In other States there are some decisions which tend somewhat to support the other view; but so far as they have come to our