Stafford County Grain Co. v. Rock Milling & Elevator Co.

Citations

• 94 Kan. 360
• 146 P. 1139
• 1915 Kan. LEXIS 99

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. “Dealing in ‘Futures” — Contracts—When Lawful — When Unlawful. A contract for the sale and delivery of a commodity at a future time where there is a bona fide intention to fulfill the contract and to deliver and receive the commodity is valid, hut if the sale is a mere pretense, a wager on the rise and fall of market prices, and there is no intention to receive or deliver the commodity, the contract is contrary to public policy and a violation of the statute.</p> <p>2. Same — Courts' Closely Scrutinize Transactions. Courts closely scrutinize the contested transactions of those who deal in futures and look beyond the form of the agreement to de-</p> <p>; termine whether it evidences a real purchase and sale which has been made with an intention to deliver and receive the commodity and not as a cover for a gambling transaction.</p> <p>3. Same — Evidence—Shoivs “Dealings” Were Gambling Transactions. In this case it is held that evidence was introduced tending to support the claim of the plaintiff that the dealings in question were gambling transactions and that the defendant participated in them and was acquainted with their character.</p>