Rued v. Cooper

Citations

• 119 Cal. 463
• 51 P. 704
• 1897 Cal. LEXIS 922

Syllabus

<p>Void Contract—Sams of Stocks on Margin—Action fob Monet Paid— Defense—Accord and Satisfaction—Insufficient Proof—Settmment of Stock Account—Receipt in Fuel—Basis of Validity of Contract. In an action by the assignee of an insolvent debtor to recover money paid by the insolvent debtor to stockbrokers under a void contract for the purchase and sale of stocks on margin, evidence of a mere settlement and receipt in full of the balance of the stock account, consisting of the dealings under the contract for the purchase and sale of the stocks upon a margin, upon the assumption that those dealings were regular and legal, without proof of any agreement to settle any claim for the recovery of the money illegally paid under the void contract, or that such claim was known or considered, or referred to in any manner upon the settlement, does not sustain a defense of accord and satisfaction of the claim sued upon.</p> <p>Id.—Evidence—Ignorance of Legal Rights.—In such action, it is error to refuse to permit the insolvent debtor to answer a question as to-whether he knew of any law authorizing the recovery of money paid in on margin stock transactions at the time of signing the receipt in full of the balance of stock account; nor is it a valid objection to such question that the witness was presumed to know the law, and could not be excused for ignorance of it.</p> <p>Id.—Maxim—Ignorance of Law—Exception—Mistake of Fact Arising from Mistake of Law—Relief in Equity.—The maxim, Ignonmtia, legis neminem excusat, though applicable generally to mistakes of law pure and simple, does not apply to the exceptional case where a party has acted in ignorance of his antecedent and; existing private legal rights, and under a misapprehension which involves a mistake of fact arising out of a mistake of law as to the existence of a legal right or title, which there could not have been an intention to part with, while in ignorance of it; but, in such case, equity will grant relief from the lega