Chapman

On December 27, 1933, Simon Douglas borrowed from appellant the sum of $17,-000, giving his note for such sum, due December 15, 1934, and as security his chattel mortgage on 5050 head of sheep, twenty-two horses, and certain hay and farm equipment. This obligation was not paid at maturity, and on January 12, 1935, while renewal negotiations were pending, Douglas died. The balance then due was $16,328.48.

Douglas’ sole heir having declined to assume the obligation appellant decided to exercise its power of sale under the chattel mortgage, and posted notices thereof as required by that instrument and by the laws of Montana. In addition, it wrote personal letters itemizing the property to be sold, to ten persons whom it thought likely to be interested in bidding. The sale was held on February 5, 1935, at the advertized time and place, and in spite of somewhat inclement weather was attended by about seventy-five people, including at least five substantial bidders. Shortly before bidding began, an attorney and a banker, whose connection with the parties does not appear, informed appellant’s auctioneer that it would be illegal to sell the property before the appointment of an…