Modern Baking Co. v. Orringer

Citations

• 271 Pa. 152
• 114 A. 264
• 1921 Pa. LEXIS 473

Syllabus

<p>Trusts and trustees — Resulting trust — Purchase of land — Payment of purchase money — Parol agreement — Evidence—Fraud— Equity — Pleadings.</p> <p>1. Where legal title is made to the parties who paid the consideration, no trust from such payment results to a corporation subsequently organized by them, and to which possession is given for business purposes.</p> <p>2. A trust may arise where the one taking title temporarily advances money for the beneficiary to make the purchase, but such an advance must be made under an agreement for repayment.</p> <p>3. Where two persons purchase real estate, and pay the purchase price, and take the legal title in themselves, no constructive trust, or one ex maleficio, arises in favor of a corporation thereafter organized by such persons, where everything is done openly and without fraud.</p> <p>4. In Such case, no trust can be established on the theory that the corporation made a parol purchase of the property, took possession, and paid for the same.</p> <p>5. A breach of such subsequent parol agreement to convey to the corporation will not warrant a conclusion of fraud.</p> <p>6. The evidence to establish' a trust in land by fraud, must be clear, explicit and unequivocal.</p> <p>7. In equity relief must be based upon the pleadings as well as upon the proof.</p>