716 A.2d 230 (1998)
The obligee and the obligor entered into an agreement under which the obligor agreed to purchase from the obligee the assets of a business, together with the assumption of certain of the business's liabilities. The note was due in two installments. The obligor never made any cash payment on the note. The obligee obtained a judgment in its favor for the amount due under the note. The intermediate appellate court reversed that judgment and held that, under the terms of the note, the obligee was required to surrender the note for cancellation in order to receive payment and that because the obligee had not surrendered the original note, the obligor had no duty to pay.
- On further appeal, the court recognized that the dominant element in the case was that the note was non-negotiable.
- The court further held that the language in the note was not a condition precedent to payment and that neither in the context of the contract as a whole, nor within the terms themselves, was the creation of a condition so clear that it overcame the preference for interpretation of the language as a covenant.
The court reversed the intermediate appellate court's judgment.
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