Camors-McConnell Co. v. McConnell

Citations

• 140 F. 412
• 1905 U.S. App. LEXIS 4800

Syllabus

<p>1. Contracts — Legality—Restraint of Trade.</p> <p>An agreement, as incidental to the sale of property as a business, that the seller will not enter into a competing business, is valid and enforceable, notwithstanding it- is in partial restraint of trade.</p> <p>[Ed. Note. — For cases in point, see vol. 11, Cent. Dig. Contracts, §§ 542-545, 555.]</p> <p>2. Same — Illegal Purpose of Covenantee.</p> <p>A contract by which a person sells his property and business good will to another cannot be repudiated on the ground that the purchaser acquired the property for the purpose of obtaining a monopoly of the business and in pursuance of an illegal combination in restraint of trade.</p> <p>[Ed. Note. — For cases in point, see vol. 11, Cent. Dig. Contracts, §§ 462-464. 547.]</p> <p>3. Same.</p> <p>In order to defeat a suit to enforce a contract on the ground, that its enforcement is sought to aid and facilitate the carrying out of an illegal' combination in restraint of trade, it must appear that the' contract is. directly connected with such unlawful purpose, and not merely collateral, thereto.</p> <p>4. Equity — Maxims—Coming into Court with Clean Hands.</p> <p>The maxim that one - coming into a court of equity must come with clean hands applies only in ease of fraud or misconduct on the part of complainant in regard to the transaction which is the subject of controversy.</p> <p>[Ed. Note. — Eor cases in point, see vol. 19, Cent Dig. Equity, §§ 185-187.]</p> <p>5. Specific Performance — Sale of Business — Enjoining Violation.</p> <p>A court of equity will enjoin a defendant from violating a contract, clearly shown, by which he deliberately obligated himself for a valuable consideration not to engage in a certain business.</p>