Samuels v. Oliver

Citations

• 130 Ill. 73

Syllabus

<p>1. Contracts—principal and agent—illegal contract—as, to make a “corner” on the market. If a grain broker, in executing the instructions of his principal, is required to pay out money to adjust differences in respect of the purchase and sale of grain, and is guilty of no fraud or violation of law, he will be entitled to be reimbursed by his principal for the outlay. The principal is bound to indemnify his agent or broker for losses incurred in executing his orders.</p> <p>2. But if one employs a broker to purchase and sell grain, with the illegal purpose of “cornering” the market or controlling the price thereof, and this fact is known to the agent or broker, the latter can not recover of his principal for services or money advanced in the execution of such illegal purpose, nor can the employer recover of his agent for moneys received by him in such illegal dealings upon the market.</p> <p>3. When parties enter into a contract which is illegal or contrary to public policy, the courts will not assist either of them, but will leave them in the position in which their illegal acts have placed them. The party advancing money or performing services under such a contract can not recover for the same of his employer, nor will he be liable to his employer for any profits derived by him in the business of his agency.</p> <p>4. The enhancement of the price of an article of prime necessity, such as wheat, or other articles, for purposes of extortion, is against public policy. And a combination or agreement to make a “corner” on stock or grain by buying it up, so as to control the market, and then purchasing for future delivery, is illegal, and a party thereto whose funds have been used by his direction in carrying out the agreement can not recover the same back.</p> <p>5. Custom—usage—as controlling dealings between parties. A person dealing at a particular market will be taken to have dealt according to the known general custom and usage of that market, and if he employs a