Model T Motors Ltd. was indebted to Simple Finance for a substantial sum of money. The finance company held a number of mortgages on the corporations assets, but pressed the corporation for a blanket demand chattel mortgage as additional security. Under pressure from the finance company, one of the principal shareholders, who was also one of the signing officers of the corporation, executed a blanket chattel mortgage to the creditor. The mortgage was not made under the corporation seal, and only one of the two signatures required by the corporations by-laws was placed on the document.

Some time later, the finance company obtained the corporate seal of Model T Motors for another purpose and affixed it to the chattel mortgage. A few weeks later, when a payment on the loan was overdue, Simple Finance seized the assets of Model T Motors under the blanket chattel mortgage.

Advise Model T Motors of its position in this case. If the matter came before the courts, how would you expect the case to be decided?