Dillman v. Nadlehoffer

Citations

• 119 Ill. 567
• 7 N.E. 88

Syllabus

<p>1. Rescission of contract—placing party in slain quo. A bill by the purchasers seeking to rescind a contract for the purchase of certain letters patent of the defendant, and all his interest in a prior partnership composed of the two complainants and the defendant, including machinery, tools, and material for the manufacture of barbed wire, and all the debts due and owing the firm, on the ground of fraudulent representations of the vendor as to the value and validity of his patents and what he had been offered for them, is bad, on demurrer, if it does not contain an offer to reconvey the patents, or seek a settlement of the partnership matters, or in any manner to restore the defendant to his former rights. It is not sufficient to allege that the patents are infringements upon others, and worthless, without showing that complainants have ceased to use the patents, or their right to use them has been questioned.</p> <p>2. Same —fraudulent representations—what to be so regarded. General statements of a vendor, pending negotiations of sale, as to the value or price of the property proposed to be sold, or as to what he had been offered for it, though false, and made with an intent to deceive, and as an inducement to the sale, affords no ground of action, for the reason it is the purchaser’s folly to rely on them. This rule is founded on the maxims of caveat emptor, and that simple commendation is not binding.</p> <p>3. Ordinarily, statements of an indefinite or general character, made by either of the parties pending a negotiation for the sale of property, relating to its cost or value, or offers made for it, and the like, will not, in the absence of special circumstances, afford any ground for rescinding the sale, although false, and made with a fraudulent intent. But where the contracting parties, from any cause, are not on equal terms, and such representations are gross exaggerations, resulting in an unconscionable bargain, a court of equity will relieve the injur