Donaldson v. Farwell
Donaldson v. Farwell
Opinion of the Court
delivered the opinion of the court.
The instructions present the questions of law arising upon the facts which this controversy involves. The doctrine is now established by a preponderance of authority, that a party not intending to pay, who, as in this instance, induces the owner to' sell him goods on credit by fraudulently concealing his insolvency and his intent not to pay lor them, is guilty of a fraud which entitles the vendor, if no innocent third party has. acquired án interest -in them, to disaffirm the contract and recover the goods. Byrd v. Hall, 2 Keyes, 647; Johnson v. Monell, id. 655; Noble v, Adams, 7 Taunt, 59; Kilby v. Wilson, Ryan & Moody, 178; Bristol v. Wilsmore, 1 Barn. & Cress. 513; Stewart v. Emerson, 52 N. H. 301; Benjamin on. Sales, sect. 440, note of the American editor, and cases there cited.
Here the vendors, exercised the right of rescission shortly after the sale in question, and as soon as they obtained knowledge of the fraud. If, therefore, this controversy were between Mann and them, it is clear that he would not be, entitled to recover.
Judgment affirmed.
Reference
- Full Case Name
- Donaldson, Assignee v. Farwell
- Cited By
- 86 cases
- Status
- Published