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Carroll v. Beardon

381 P.2d 295 (1963)

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Carroll v. Beardon

Supreme Court of Montana

381 P.2d 295 (1963)

Facts

On March 15, 1960, Edna Carroll (plaintiff) sold real property to Agnes Beardon (defendant) for $42,000.00. Under the terms of the mortgage, Beardon was to pay $1,000.00 per month from January to June and $2,000.00 per month from July to December. Beardon defaulted after making one payment. In September 1960, Carroll instituted a foreclosure action against Carroll for $41,805.53. In her answer, Beardon argued that the contract was unenforceable, because the transaction was illegal. Beardon alleged that, prior to the sale, Carroll had used the property to run a house of prostitution and that she had sold the property to Beardon knowing that Beardon would continue to use it for that purpose. The trial court ruled in favor of Carroll. Beardon appealed.

Rule of Law

Issue

Holding and Reasoning (Harrison, J.)

Concurrence (Adair, J.)

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