Pike's Peak Paint Co. v. Masury & Son
Pike's Peak Paint Co. v. Masury & Son
Opinion of the Court
Suit by appellees against appellant to recover the agreed price of goods, wares and merchandise, alleged to have been sold and delivered by the former to the latter. The answer was that the property purchased by the defendant consisted of varnishes, dry colors and certain kegs represented to contain white lead of good merchantable quality; that by the contract of purchase the plaintiff agreed to furnish labels to be pnt upon the kegs containing the supposed white lead, and which would indicate and guarantee the good quality of the article; that the defendant purchased relying upon the representation of quality; that the compound purporting to be white lead contained no white lead; that, after discovering that the
The testimony was that the defendant had sold about 20,000 pounds of the supposed white lead, and had sold it all at a profit. There was no evidence that any of it remained on hand for lack of a demand, or that any which was sold by the defendant was ever returned on account of its quality, or for any reason, or at all. There was no evidence of the market value of the lead, or that it was worth any less than was agreed to be paid for it. Indeed, the fact that the great bulk of it was sold at an advance on its cost would indicate that it was worth at least the price charged. If there was a misrepresentation, there was a total want of evidence that any damage resulted from it; and it nowhere appears that the defendant was damaged in any way by the failure to furnish labels, if there was such failure.
Counsel representing the defendant does not, in his argument, undertake to say that his client suffered any loss on account of misrepresentation, or loss from any cause. His sole contention is that the goods were fraudulently sold for what they were not, and that, therefore, the contract was in contravention of public policy and cannot be enforced, and he characterizes the conduct of the plaintiffs as involving-gross moral turpitude. On examining- the facts attending the sale as the evidence discloses them, we discover nothing- very flagrant in the conduct of the plaintiffs. Nowhere do we find it testified that the
In referring to the evidence concerning the facts connected with the sale, we have been moved by the extravagant terms employed by counsel in denunciation of the contract, but the disposition which must be made of the case does not depend upon such facts, whatever they may have been. Even on the supposition that the defendant was imposed upon by the fraud of the plaintiffs, nothing has been shown constituting a defense to the action. Plowever fraudulent the conduct of the plaintiffs may have been, the contract does not belong to the class of contracts which have been reprobated by the courts as opposed to public policy. A contract, to be against public poL icy, must be such that its performance would, in some way, have a tendency to work injury to the public, and such a contract is absolutely void. — See 23 Am. & Eng. Ency. of Law (2d ed.), 455; Fearnley v. De-Mainville, 5 Colo. App. 441; Goodyear v. Brown, 155 Pa. St. 514; Spence v. Harvey, 22 Cal. 337.
But a contract procured by fraud is injurious only to the person defraud’ed, and it is not void, but voidable only. — Benjamin on Sales, § 452.
Where a purchase of goods has been induced by fraudulent representations, the purchaser may, upon discovery of the fraud, rescind the sale and return the }Droperty to the vendor. But the rescission must be a complete rescission. The contract cannot be affirmed in part and rescinded in part. — Buchenau v. Horney, 12 Ill. 336.
However, the purchaser is not bound to rescind. He may retain the property and claim compensation in damages for the injury sustained by reason of the
But the defendant is not claiming damages. It simply proposes to retain the money for which it sold the goods, and, on the hypothesis that the contract of sale was void as being against public policy, repudiate the indebtedness it incurred in their purchase. Upon its own showing, it can have no standing in a tribunal established for the administration of justice.
Let the judgment be affirmed.
Affirmed.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.