Whitney v. Burr

Citations

• 115 Ill. 289
• 3 N.E. 434

Syllabus

<p>1. Specific performance—of parol contract to assign interest in letters patent. Specific performance of a parol agreement for the transfer of a party’s interest in letters patent may be decreed when the rights of innocent bona fide purchasers have not intervened, and also as against a purchaser having notice that his vendor had made a verbal sale of his interest.</p> <p>2. Although it may be that a writing is necessary to pass the legal title to letters patent, yet an equitable title or interest in the same may be conferred by a parol agreement of the holder of the legal title, which, as between the parties thereto, where the rights of innocent purchasers do not arise, a court of equity will sustain and enforce. Section 4898 of the Revised Statutes of the United States has reference only to the legal title in letters patent.</p> <p>3. Notice to agent—whether notice to principal. If an agent has notice, at the time of his purchase for his principal, of the equitable rights of another, and of the claim of the latter to have previously purchased the subject matter of the sale, this will be notice to the principal.</p> <p>4. Interest—on the contract price of a sale of one partner's interest to the other. Where one partner sold his interest in the partnership for a certain sum, there being no agreement to pay interest, and it was understood that this sum was to be paid out of the moneys realized by sales of the partnership assets, and the partner selling failed to take any steps to have the firm assets converted into money or make any demand for the sum agreed to be paid him, it was .held, that the court, on bill by the purchaser for specific performance, properly refused to allow interest on the contract price.</p>