Cincinnati Cooperage Co. v. Gaul

Citations

• 170 Pa. 545
• 32 A. 1093
• 1895 Pa. LEXIS 1435

Syllabus

<p>Sale — Contract—Rescission—Fraud—Insolvency.</p> <p>Insolvency of the purchaser of goods and his knowledge of it, coupled with a representation of solvency which induced the seller to part with the possession of his property, will enable the latter to rescind the sale and recover possession of the goods.</p> <p>The jury may reasonably infer that the purchaser was insolvent at the time of the sale, and that he knew, or ought to have known that he was, if within two months from that time he makes an assignment for the benefit of creditors, and the inventory filed by the assignee shows assets amounting to about $4,000, and liabilities amounting to about $50,000, and there is nothing to show any losses, or change in his financial condition between the sale and the assignment. In such case, if the evidence shows that he induced the sale by stating that his financial condition was better than it had ever been, it is sufficient to rescind the sale.</p>