Klein v. Buck & Markham

Citations

• 73 Miss. 133

Syllabus

<p>1. Contract. Sale of instvramce agency. Govencmt not to re-engage in insurance business. Injunction for breach. Insufficient defensethereto. Case.</p> <p>Where the defendant has agreed, in writing, as a part of the consideration of a sale of his business as an insurance agent representing- certain companies within a certain territory, not to reengage in the insurance business within such territory, for a definite period, the fact that the purchaser has not executed certain notes he had agreed to give for installments of the purchase money is no defense to a proceeding by injunction brought by the vendee of such purchaser to prevent a violation of his agreement by the defendant, when it appears that the defendant had directed the payment of all the purchase money remaining due to certain of his creditors by an order in their favor which had been accepted by the purchaser, the right to demand the notes, if any, being that of the creditors and not of the defendant.</p> <p>2. Same. Notes for un/paid purchase money. Agreement to give same. Waimer by those beneficially interested.</p> <p>Where, in such case, the purchaser had himself sold and transferred the agency to another person, with the assent of the creditors named in the order, who released him from all liability as acceptor, on the execution by his vendee of an obligation to apply the receipts of the agency to the payment of their claims, the right to demand the notes agreed to be given to ,the defendant will be treated as waived by such creditors.</p> <p>3. Same. Rescission of contract. Omission of acts essential thereto. Restoration of money paid.</p> <p>Although the purchaser, prior to sale to the enjoining complainant, may have demanded a rescission of the contract on the grounds that the representation’s of defendant as to the annual receipts of the agency were untrue, and that he had violated the covenant against re-engaging in the insurance business, and the restoration of the sum paid by him in cash wh