Silverman v. Bullock

Citations

• 98 Ill. 11
• 1881 Ill. LEXIS 220

Syllabus

<p>1. Power or attorney—sale on credit under. Where a power of attorney for the sale of land is general, containing no limitation upon the attorney, and no directions as to whether the sale shall be for cash or on time, it will be in the discretion of the attorney to make sales according to the usual custom in such matters, and a sale on credit, made in good faith, by such attorney will be upheld.</p> <p>2. Notice—to principal, of his attorney’s act, by recording. Where an agent under a power of attorney sells and conveys lots of his principal on time, taking mortgages and trust deeds on the same to secure the purchase money, which he places upon record, the principal will be held to have notice of what the record of the mortgages and trust deeds discloses, and he can not be heard to deny notice of the fact that his agent has sold on credit and taken notes payable to himself.</p> <p>3. Assignment—of notes—cuts out defence. Where an agent under a power of attorney, fraudulently sells and conveys lots of his principal to a third person, who gives his notes for the price, payable to the agent, secured by mortgage on the property sold, and the payee transfers the notes to an innocent purchaser, for value, the original owner of the land can not have the sale of the lots set aside as against the rights of the assignee of the notes, and the latter will have the right to enforce the security for their payment-</p> <p>4. Same—of mortgage—subject to what equities. The assignee of a mortgage takes it subject only to the equities existing in favor of the mortgagor against the assignor, and not subject to latent equities in favor of third persons, in the subject involved in the assignment, of which he had no notice.</p> <p>5. Although a sale of property may be fraudulent, and subject to be set aside by the original owner defrauded, yet where the purchaser gives his notes for the purchase money, secured by mortgage on the property, which is recorded, he will not be allowed to all