Loving Publishing Co. v. Johnson

Citations

• 68 Tex. 273
• 4 S.W. 532
• 1887 Tex. LEXIS 680

Syllabus

<p>1. Contract—Fraud.—One who does business in his own name, in replenishing from time to time by purchasing and in selling in the usual course of trade a stock of goods, under such circumstances as to induce others dealing with him to regard him as the real owner, must as to creditors and purchasers be regarded as the real owner. This case distinguished from Tufts v. Bank, 63 Texas, 113.</p> <p>2. Same.—A secret contract by which one who is the apparent owner of a stock of goods and merchandising in his own name is to pay for them to the former owner in instalments of three-fourths of the gross receipts from sales at stated periods, to replenish by purchase from time to time, the title to the original stock, and to that bought to replenish, to remain in such former owner until the original debt is paid, can only be regarded as to purchasers and creditors without notice as a device for the perpetration of fraud.</p>