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Contracts Keyed to Templin
Calhoun v. Universal Credit Co.
Citation:
146 P.2d 284, 106 Utah 166Facts
On February 5, 1941, Calhoun purchased a 1939 Dodge sedan from Hunter Motor Company under an installment contract that was assigned to Universal Credit Company. The contract specified that time was of the essence and allowed for immediate repossession upon default. Calhoun made numerous late payments which Universal accepted. In February 1942, facing induction into the army, Calhoun wrote to Universal about making arrangements for the car. Sanders, Universal’s adjuster, met with Calhoun and granted him time to dispose of the car or decide whether to keep it. Without further notice or demand for payment, Sanders repossessed the car on February 16, 1942. Although Sanders claimed he had given Calhoun until February 7 to make arrangements, the court found the extension was indefinite. Sanders had attempted to contact Calhoun several times but did not successfully communicate a demand for payment before repossession.
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