Sell v. Compton

Citations

• 91 Kan. 151
• 136 P. 927
• 1913 Kan. LEXIS 352

Syllabus

<p>SYLLABUS BY-THE COURT.</p> <p>1. Contract- — Land Exchanged for Merchandise — Failure to Rescind Promptly on Discovery of Fraud — Waiver of Right to Rescind. A man who trades his farm for a stock of merchandise and 'fixtures, gives a deed to the farm, a note for the difference in price between the farm and the goods, and agrees to pay a percentage of the proceeds of the sales of the goods on the note, has no standing in equity to ask for cancellation of the deed and note on the ground that the goods were fraudulently misrepresented unless he disaffirm promptly on discovery of the fraud and restore, or is able to restore, the other party to the trade substantially to his original status.</p> <p>2. - Same. If, after knowledge of the fraud, the purchaser of the goods continue to sell them in regular course of retail trade, conduct a ten-day special sale, otherwise dispose of considerable quantities of the goods, make payments on the note, and submit to a foreclosure of a chattel mortgage given to secure the note, all without any expression of dissatisfaction, the contract is affirmed in fact and in law, and his only remedy is by an action for damages.</p>