Staley v. Murphy

Citations

• 47 Ill. 241

Syllabus

<p>1. Rescission of contract—placing a party in statu quo. The general rule is, that a party will not be permitted to treat a contract as rescinded, unless he can place the other party in statu quo. Gross laches in a vendee may excuse a vendor in not promptly7 refunding money paid, when he elects to treat the contract as rescinded, and he will hold the money subject to the equities between the parties.</p> <p>2. But the rule is different with respect to negotiable notes; these must, in all cases, be surrendered up or cancelled, as a vendor will not be permitted to rescind a contract and hold the notes given for the purchase money, with the power of passing them to innocent holders, and thus defeat the equities between the parties.</p> <p>3. Ejectment—defense by vendee in possession. Where the contract which let a vendee into possession expressly provided for a re-entry by the vendor in case of default in payment, but contained no provision as to the money paid on the contract, or the notes given for deferred payments: Held, after default by the vendee, the vendor could not re-enter without offering to place the vendee in statu quo, so far as required by the rules of law. Also, held, that the contract, not being legally rescinded, the vendee could protect his possession in an action of ejectment.</p> <p>4. Injunction—wleere there is a defense at law. A court of equity will not enjoin the prosecution of an action at law, upon grounds available as a defense in such action.</p> <p>5. Specific performance. Where a purchaser of lands holds a contract for a deed, to be executed to him upon the maturity of the last of a series of notes executed by him to Ms vendor for the deferred payments, and such purchaser sells to a third person, receiving a portion of the purchase price cash in hand, and the notes of his vendee for the deferred payments, drawn for the same amounts, and maturing at the same time as the notes given by him to Ms vendor, such second purchaser cannot, by ob