Tyler v. Bailey

Citations

• 71 Ill. 34

Syllabus

<p>1. Action—failure of consideration—counterfeit land, warrants. If a person purchases land warrants which prove to be counterfeit, and he gives notice to, and offers to return the same to his vendor in a reasonable time after he discovers them to be counterfeit, he may recover the price paid, with six per cent interest from the date of payment, as for money paid upon a consideration which has failed.</p> <p>3. Same—action of government officials does not affect right to recover. The fact that the warrants are received by the government officials as genuine, in the entry of lands, and afterwards by issuing patents for the land, will not affect the purchaser’s right of recovery, where he is after-wards required to procure other warrants in their place upon discovering that they were counterfeit.</p> <p>3. Measure op damages. In a suit to recover on a total failure of consideration, the measure of damages is, the money paid, with interest from the day of payment to the time of recovery.</p> <p>4. Warranty of genuineness of the instrument sold. It is a general, if not a uniform, rule that a person passing bank bills, or commercial paper, or making sale of a chose in action, guarantees or warrants the genuineness of the instrument, and this, whether he does so in terms, or is silent when the transfer is made.</p> <p>5. If a person sells and transfers land warrants, the law will imply a warranty that they are genuine, and an obligation to restore the purchase money to the purchaser when it is ascertained they are counterfeit and an offer is made to return them in a reasonable time.</p> <p>6. Patents—issued on counterfeit warrants. Where patents are issued on counterfeit land warrants, if the government has not the right to withdraw the same and cancel the entries, it has the right to file a bill and have them canceled, or to sue the patentee who made the entry, and recover the price of the land.</p> <p>7. Estoppel—by receiving paper as genuine. If individuals, or privat