Unico v. Owe

50 N.J. 101 (1967)

Purchase the Printed Copy at bsmsphd.com

Nature of the Case

To access this section all you need to do is click here and register.

Facts

Owen (D) signed a retail installment contract with Universal for the purchase of 140 albums for $698 and a free Motorola stereo record player plus interest. Universal sold the note to Unico (P) with full recourse. The note demanded payment of $22.77 per month for 36 months, but Universal's performance was to delivery 24 albums per year over a 5.33-year period. D would be finished paying for the goods still in Universal's possession and the contract allowed for no recourse to D in the event Universal assigned the contract to another. D received the stereo record player and 12 albums called for by the contract. D continued to make payments for twelve months and never received another album. D tried to communicate with Universal and finally ceased making payments when the albums were not delivered. P then contacted D and informed them that it held the note and that payment must be made. D had paid $303.24 on the contract for 12 albums and the stereo record player. Universal had become insolvent. P sued for the balance due on the note. The issue was whether P was a holder in due course. Judgment was entered for D. P appealed.