Ruhl v. Mott

Citations

• 120 Cal. 668
• 53 P. 304
• 1898 Cal. LEXIS 832

Syllabus

<p>Vendor and Purchaser—Rescission of Contract of Sale—Waiver—Affirmance.—The right of the purchaser of land to rescind the contract of sale and purchase, for alleged fraud of the vendor, is waived, where it appears that the purchaser went into possession of the land, and one year after making the deed, and after discovery that he had been imposed upon, conveyed city property to the vendor in part payment of the purchase money, and one year later, after default in the payment of interest, executed a new note and mortgage, which included the unpaid interest, whereupon the earlier note and mortgage were canceled. No fraud nor imposition having been practiced by the vendor to secure these new arrangements, they were distinct acts of affirmance of the contract by the purchaser after knowledge by him of the fraud, and precluded his right to rescind the contract.</p> <p>Id.—False Representations—Means of Knowledge—Discovery—Duty to Investigate.—Where a person is justified in relying and does in fact rely upon false representations, his right of action is not destroyed because means of knowledge are open to him, and no duty is devolved upon him in such case to employ such means of knowledge; but when, thereafter, he discovers that he has been deceived and defrauded as to one material matter, he has notice that he may have been otherwise defrauded, and is bound to make full investigation.</p> <p>Id.—Election to Rescind or Affirm.—A defrauded party has but one election to rescind, and he must exercise that election with reasonable promptness after discovering the fraud; and delay in rescission is evidence of a waiver of the fraud, and of an election to treat the contract as valid, and any acts evincive of an intent to abide by the contract are evidence of an affirmance of the contract, and of a waiver of the right of rescission.</p> <p>Id.—Findings—Offer to Rescind—Acts of Affirmance — Ignorance of Law.—Where the plaintiff had knowledge of facts and of law sufficient to perf