Waite v. Frank

Citations

• 14 S.D. 626
• 86 N.W. 645
• 1901 S.D. LEXIS 68

Syllabus

<p>1. Where a note and mortgage were given to plaintiff by defendant for a credit to be used by defendant in the purchase of commodities through plaintiff’s exchange on margins, and plaintiff was fully acquainted with the defendant and understood his financial condition, and necessarily knew that defendant could not'make payments for the large amounts in which he dealt, and that he was neither a shipper of such commodities nor inferested in any business requiring the use of them, such evidence warranted a finding that plaintiff knew that the transaction was for gambling purposes only, and that no intention to receive or pay for the goods was intended.</p> <p>2. On an issue whether a purchase and sale of commodities Was bona fide, or a gambling transaction on margins, evidence that in the transaction in dispute the parties have actually settled differences, and have not delivered the commodities bargained for, is admissible, as tending to show the intention at the inception of the contract.</p> <p>3. On an issue whether transactions were bona fide, or simulated contracts for the purchase and sale of commodities on margins, it is immaterial that the transactions were accomplished by formal orders signed by defendant and delivered to plaintiff for purchase and sale, if the real intent of the parties, derived from all the circumstances in the case, shows that the parties intended to adjust the orders by a settlement of differences.</p> <p>4. On an issue as to whether purchases of commodities on margins were bona fide or simulated, it was not error to permit the defendant to testify as to bis intention not to receive or deliver any of the commodities, since such evidence constituted a link in the chain necessary to show the real'intention of the parties to the transaction.</p> <p>5. Where plaintiff sued to recover on a note given for margins, other persons, who were accustomed to deal with plaintiff on his exchange, and who knew how such exchange was conducted, could pro