Ripley v. Jackson Zinc & Lead Co.

Citations

• 221 F. 209
• 136 C.C.A. 619
• 1915 U.S. App. LEXIS 1309

Syllabus

<p>1. Sales <§=>38—Fraud—Bribing or Corrupting Buyer’s Agent.</p> <p>A contract of sale, brought about by bribing or corrupting the buyer’s agent, may be rescinded by the buyer.</p> <p>FEd. Note.—For other cases, see Sales, Cent. Dig. §§ 65-77, 85; Dec. Dig. <®=>38.]</p> <p>2. Contracts <§=>270—Rescission—Time eor Rescission.</p> <p>A party entitled to rescind a contract for fraud must announce his purpose to rescind promptly and unequivocally upon the discovery of the fraud.</p> <p>I Ed. Note.—For other eases, see Contracts, Cent. Dig. §§' 1189, 1200; Dec. Dig. <©=5270.]</p> <p>8. Sales <©=>126—Rescission—Time eor Rescission.</p> <p>Tlie president, directors, and a large number of stockholders of a company, induced to buy a mill and mining machinery by bribing or corrupting its agent, learned of the fraud as early as April 7th or 8th, when in the city where the perpetrators ol the fraud resided, but, instead of áhnounctng their intention to rescind, they returned to their homes and took the matter under advisement. On April 13th, without complaint, the corporation remitted a part of the purchase price, and sought and secured an extension of the remaining payment until June 15th, and on May 19th, si ill without complaint or a suggestion of rescission, it sought a further extension. No formal notice of rescission was ever served on the seller, and no suggestion of a right to rescind was ever conveyed to him, until in June, 1910, when an attorney stated In an informal way that the corporation wished to rescind. Nothing further was done until suit was brought in December to recover damages for the fraud. Held,, that there was no such prompt, unequivocal, and unevasive announcement of the corporation’s rescission as tlie law required; the facts, on the contrary, making a strong showing of ratification after discovery of the fraud.</p> <p>•®=>For other cases see same topic & KEY-NUMBER in all Key-Numberod Digests & Indexes</p> <p>[Ed. Note.—Eor other cases, see Sales, Ce