Automobile Finance Co. v. Rosenheim

Citations

• 73 Pa. Super. 546
• 1920 Pa. Super. LEXIS 61

Syllabus

<p>Sales — Stock sales — Rescission—Return of consideration — Affidavit of defense — Insufficiency,</p> <p>Where a party desires to rescind upon the ground of mistake or fraud, he must, upon the discovery of the facts, at once announce his purpose, and adhere to it. If he be silent, and continue to treat the property as his own, he will be held to have waived the objection, and will be conclusively bound by the contract, as if the mistake or fraud had not occurred.</p> <p>One who purchases the stock of a corporation and agrees to pay for it out of commissions earned for the sale of other stock of the corporation, cannot defend a suit for the balance of the purchase price on the ground that the company had entered into certain transactions which greatly impaired the value of the stock he was to sell, unless he has offered to return the stock he purchased and demanded the purchase price already paid. He cannot keep his stock and refuse to pay for it.</p> <p>In an action for the purchase price of stock an affidavit of defense is insufficient which, alleging fraud as a defense to the plaintiffs claim, does not aver a rescission of the contract or a return of the stock. The defendant having elected to affirm the contract is bound to comply with its terms.</p>