Harrington v. Paterson

Citations

• 124 Cal. 542
• 57 P. 476
• 1899 Cal. LEXIS 1032

Syllabus

<p>Vendor and Purchaser—Rescission of Purchase — Discovery of Fraud—Diligence.—A purchaser desiring to rescind the contract of purchase for alleged fraudulent representations of the vendor in inducing the purchase must do so promptly, upon discovery of the facts constituting the fraud, and as soon as reasonably possible thereafter should commence the proceedings for relief.</p> <p>Id.—Imputed Knowledge—Means of Knowledge—Putting upon Inquiry.—The purchaser must be held to have knowledge of the facts constituting the alleged fraud whenever the means of knowledge thereof existed, and the circumstances were such as to put him on inquiry.</p> <p>Id.—Acquiescence—Waiver of Relief.—Acquiescence by unnecessary delay after actual or imputed knowledge of the facts constituting the fraud, will defeat the equitable relief; and if, after discovery of the falsity of the representations, the purchaser conducts himself in reference to the transaction of purchase, as though it were still subsisting and binding, he thereby waives all relief for rescission thereof.</p> <p>Id.—Assumption of Mortgage—Mortgage to Vendor—Payments after Discovery of Fraud-—Waiver of Rescission.—Where the purchaser assumed a mortgage made by the vendor to a hank, and gave the vendor a mortgage for the unpaid residue of the purchase money, and after admitted discovery of the falsity of the alleged misrepresentations continued for many months to make payments to the bank and to the vendor, and took no steps for rescission otherwise than by cross-complaint in an action in which both mortgages were sought to be foreclosed, and which was brought more than sixteen months after the alleged discovery of fraud, he is chargeable with laches, acquiescence, and waiver of the right of rescission.</p>