Wiest v. Garman

Citations

• 3 Del. Ch. 422

Syllabus

<p>After the parties to a contract for the sale of lands have gone so far as to execute the contract by conveyance of title, the transfer of possession, and the payment or securing of the purchase money, the Court of Chancery will not unravel the transaction merely to relieve against the hardship, or even great injustice, of an unequal bargain. A contract executed will be set aside, only where either there has been mistake materially affecting the subject matter of it, and with respect to which the contract cannot be reformed, or where the contract has been procured by fraud, in some of its forms of misrepresentation, circumvention, or undue influence.</p> <p>But misrepresentations made by the vendor to the purchases of a farm, at an exhorbitant price, as to the value of the crops produced and the cost of improvements made on it the preceding year, at the time of selling it to him, even if they form a material inducemement on the part of the purchaser to buy it, will not be ground for a decree rescinding the sale.</p> <p>Two distinct classes of misrepresentations by vendors in a bargain are recognized with different effect. Against mis-statements which concern the essence or subject matter of the contract, equity will relieve, whether they be the result of fraud or mistake. But against such as concern merely the value of the property sold, equity will not relieve, so far as to rescind a sale already executed.</p> <p>With reference to the effect of fraudulent misrepresentations by a vendor touching the property sold, there is a material distinction in a court of equity, whether the bill is for the specific performance of a contract yet unexecuted, or it is a bill to rescind a contract which has been executed. § It is in this last class of cases that courts of equity so stringently apply the maxim caveat cmptor, a hard, stern maxim, but one founded both on justice and policy.</p> <p>Although for mere inadequacy of consideration, without other circumstances, a contract