Daniel v. Universal C.I.T. Credit Corp‪.‬

HALE, Justice. Appellee sued appellant for damages on account of the alleged breach of a ""Retail Protection Agreement For Automobile Dealers"" dated October 21, 1948, hereafter referred to as the protection agreement. On December 21, 1948, R. D. Spann purchased a new Hudson automobile, hereafter referred to as the car, from appellant at the agreed price of $3742.32. Spann paid $1110 in cash or trade-in value and executed a combination note and chattel mortgage covering the car for the balance of the purchase price, the note being payable in 18 equal monthly installments of $146.24 each. For a valuable consideration the note and mortgage was immediately sold and assigned to appellee by appellant without recourse as to Spann's obligation of payment. Spann defaulted in the payment of the note and delivered the car to appellee who, after calling upon appellant to purchase the car at a price equal to the balance due on the unpaid note of Spann, sold the car at auction sale for $1000. Appellee then sued appellant for damages in a sum equal to $1,000 less than the balance due on the unpaid note of Spann.