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Bedian v. Cohn
Illinois Appellate Court
134 N.E.2d 532, 10 Ill. App. 2d 116 (1956)
Asadour and Elizabeth Bedian (plaintiffs) sold their property to Arnold Cohn (defendant) through an oral contract. The mortgage agreement contained a nonrecourse provision that stated Cohn would not be personally liable for any deficiency in the event of a foreclosure. When Cohn defaulted, the property value was not enough to cover the amount that Cohn still owed. The Bedians sued to recover the balance, and the chancellor held that the Bedians were entitled only to recover the property. The Bedians appealed and argued that the restriction on personal liability is void because an essential element of a mortgage is the promise to pay a debt.
Rule of Law
Holding and Reasoning (Scheineman, J.)
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