Wilson v. Hundley

Citations

• 96 Va. 96
• 30 S.E. 492
• 1898 Va. LEXIS 65

Syllabus

<p>1. Contracts&emdash;Fraud in the Procurement&emdash;Bights and Bemedies of the ¡Defrauded Party.&emdash;A contract induced by fraud is not void, but voidable only, at the option of the party defrauded. Upon discovery of the fraud, he may, as a general rule, either elect to rescind the contract, if he can restore what he has received in the same state or condition in which he received it, and recover back the consideration, or, if he has not paid or given anything, repudiate the contract, and rely, when sued, upon the fraud as a complete defence ; or he may elect to retain what he has received under the contract, and sue to recover damages for the injury he has sustained from the deceit. By the latter course he, in effect, affirms the contract, but does not waive or release his claim for damages arising from the fraud collateral thereto.</p> <p>2. Contracts&emdash;Fraud in the Procurement&emdash;Election to Bescind or Affirm.&emdash; If a party who has been defrauded in the procurement of a contract, elect, on discovery of the fraud, to affirm the contract, his election is final and conclusive. He has but one election to rescind, and, having once elected to affirm the contract, he cannot thereafter disaffirm.</p> <p>3. Contracts&emdash;Fraud in the Procurement&emdash;Election to Affirm&emdash;Subsequent Discovery of New Incidents im, the Fraud&emdash;Bescission.&emdash;A party who has elected to affirm a contract which was voidable for fraud in its procurement cannot afterwards elect to rescind it upon the subsequent discovery of new incidents in the fraud. Knowledge of the fraud puts the party defrauded to his election. Subsequent discovery of new incidents of the fraud simply confirms the previous knowledge, and does not confer a new right to rescind.</p> <p>4. Stock Subscriptions&emdash;Fictitious Subscribers&emdash;Liability of&emdash;Effect on Bona Fide Subscriptions.&emdash;Fictitious or colorable subscriptions to stock, made and used with intent to induce o