Stratton v. California Land & Timber Co.

Citations

• 86 Cal. 353
• 24 P. 1065
• 1890 Cal. LEXIS 1033

Syllabus

<p>Vendor and Purchaser — Default of Purchaser — Bona Fide Release for Value —Resulting Trust — Quieting Title.—A vendor under a contract for the sale of land who, upon default of the purchaser and of his assignee in the payment of the last installment of the purchase-money, after demand for the same, and tender of a conveyance, procures from such purchaser and his assignee, with whom he dealt individually throughout the transaction, a release of all claims against him in favor of each of them, for a valuable consideration, without notice of a resulting trust existing in favor of a corporation whose funds have been used by them in payment of the previous installments of purchase-money, takes the land freed of such trust, and may maintain an action to quiet his title against the corporation and its successors in interest.</p> <p>Id. — Extinguishment of Equitable Title. — The releases so obtained extinguished the equitable interest in the land acquired by the contract of sale, and the vendor became thereby the legal and equitable owner of the lands as completely as though the contract of sale had never been executed and partly performed.</p> <p>Id. — Subcontract of Purchaser — Implied Trust—Notice to Vendor. — A subcontract of the purchaser purporting to sell the same land at an increased price to the corporation whose funds had been used in obtaining the purchase, though its contents may be known to the vendor, does not charge the vendor with notice of the implied trust, or put him en inquiry as to the company’s interest in the original contract of sale.</p> <p>Id. — Assignment. — A subcontract by a purchaser for the sale of the same land does not operate as an assignment of the original contract of sale.</p> <p>Id.—Rescission of Contract — Quieting Title — Pleading.—The rule in regard to rescission of contracts, that the parties must be placed in statu quo, has no application when the object of the action is to quiet the title of a vendor who has for value obtained