Schrager v. Cool

Citations

• 221 Pa. 622
• 70 A. 889
• 1908 Pa. LEXIS 540

Syllabus

<p>Statute of frauds — Trusts and trustees — Resulting trust — Parol proof— Evidence — Principal and agent — Agent taking title in his own name.</p> <p>The facts, which if admitted, will give rise to an implied or resulting trust, may be proved orally; otherwise the exception of those trusts from the statute of frauds would be inoperative.</p> <p>A trust will spring from the fraud practiced where one employed to negotiate for another takes advantage of the opportunity to obtain a conveyance to himself.</p> <p>Where an agent to buy land uses his own money to complete the purchase, the transaction will be regarded as a loan to the principal. Nor does the fact that he pays in full out of his own funds necessarily exclude the operation of the principle.</p> <p>Where an agent agrees to purchase land for his principal, but in violation of his duty takes the title in his own name, paying a part of the purchase money out of his own funds, and thereafter sells the land at a profit, the agent can only retain from the amount received by him his expenses, commissions and advances, and if he refuses to account for the balance the principal may maintain an action of assumpsit to recover it, and in such action may prove the contract by parol evidence. Such an action is not for land nor does it involve title to land and the statute of frauds does not apply; and even as against an agent the statute of frauds would not prevent a recovery.</p>