Howard v. Stillwagon

Citations

• 232 Pa. 625
• 81 A. 807
• 1911 Pa. LEXIS 776

Syllabus

<p>Contracts — Rescission—Agreement to sell — Option to declare void,— Duty to refund purchase money already paid.</p> <p>By a written agreement the plaintiff agreed to buy and the defendants to sell certain property, the purchase money to be paid partly in cash and partly in installments, payable at stated times, with interest, to secure the payment of which the defendants were authorized to enter judgment against the plaintiff for the sum due or to confess judgment in ejectment against him on his failure to pay; the agreement also provided that on default of any payments the agreement should be void, “as it regards the first parties, at their option.” Subsequently part payments of the principal were made, together with interest, at times when they were considerably past duo, but these were accepted by the appellees without protest. The defendants afterwards without notice to the plaintiff that no further indulgence in making payments would be granted, and without tendering a deed and demanding the balance of the purchase money, entered judgment in ejectment, and were put in possession of the property. The plaintiff brought assumpsit for the purchase money paid by him under the contract. Held, 'that when the defendants rescinded their contract, they could no longer derive any benefit, directly or indirectly, from it and they were bound to place the plaintiff in statu quo by returning the purchase money which they had received from him.</p>