Neil v. Cummings

Citations

• 75 Ill. 170

Syllabus

<p>1. Assignment—assignee of note given to Ms agent takes subject to defense. Where an agent, in selling territory for a patent right for his principal, takes notes payable to himself and assigns the same to his principal, the latter will not be an innocent assignee so as to cut off a defense, but he will be treated as though he was the original payee.</p> <p>2. Fraud—rescission of contract procu/red by fraudulent representations. Where the agent of the owner of a patent right,by false representations as to the value of the territory, and the demand for the invention, which were not only untrue, but known to be so when made, and by other false representations as to the extent of sales made, and the adoption of the invention in certain localities, induced a party to purchase certain territory and give his notes for the price, secured by mortgage, and indorsed the same to the principal, and it appearing that the patent and the territory sold were worthless, and that the purchaser had tendered back a deed for the same: Held, that for the fraud practiced a decree rescinding the sale and for the cancellation and surrender of the notes and mortgage was proper.</p>