LILJEDAHL V.

GLASSGOW Glassgow and Hiatt were residents of Iowa

The mortgage was payable in Iowa (in Shenandoah)
Short summary: Morgagee sues the transferee of the Mortgagor for the
Delivery by Bailey to Glassgow is presumed to be in Iowa also
amount due. Transferee argues that in accordance with lex situs, he is not
Evidence was introduced before the jury that Glassgow and Hilger
liable. The court held that he is, it being assumed that the parties contracted
(also a subsequent transferee) understood the legal implications of
w/ the reference to lex contractus.
accepting a deed containing the statement making them liable (Hilger,
FACTS: after finding out that there was a deed saying the said statement, he
returned the deed and rescinded the contract)
BAILEY (DEBTOR-MORTGAGOR) executed a mortgage in favor of
The parties may be presumed to have contracted with reference to
Foskett (original CREDITOR)
the law of Iowa, where the contract was executed and to be
Foskett assigned the proceeds of the loan and the mortgage to
performed, and that they intended to be bound in accordance
Liljedahl.
therewith
Land mortgaged was in Colorado; principal loan payable in Iowa
Bailey sold the mortgaged land to GLASSGOW w/ a deed containing NOTE: NO FULL TEXT OR SCRIBD DIGEST AVAILABLE. COPIED THIS FROM
a blank space for the insertion of the name of the grantee (and w/ a ONLINE REVIEWER.
statement as follows: "grantee assumed and agreed to pay the
plaintiff's mortgage"
Glassgow, though, did not put his name on the blank
Glassgow later transferred the land to another
Liljedahl now sues Glassgow as the grantee of the land
Iowa - Where principal obligation was entered into; Glassgow liable
for payment of obligation upon acceptance of deed (irrelevant if he
placed his name on the blank)
Colorado - Where the land is located; Glassgow NOT liable, he having
not placed his name on the blank
Glasslow and Hiatt (a later grantee) were residents of Iowa - and so
Is Liljedahl

ISUE: Whether Glassgow is liable? YES. Apply Colorado Law

HELD: Instruments of conveyance primarily or directly relating to the tile

follow lex rei sitae; personal covenants or agreements in instruments of
conveyance follow law of the place where the same is executed and to be
performed

Contracts made and to be performed in a particular state are made

with reference to the law of that state