Wiser v. Lawler

Citations

• 189 U.S. 260
• 23 S. Ct. 624
• 47 L. Ed. 802
• 1903 U.S. LEXIS 1349

Syllabus

<p>Promoters of mining enterprises, in the preparation of prospectuses, are bound to consider the effect that would be produced upon an ordinary .mind by the statements contained in them, and in estimating the probability of persons being misled by them, the court may take into consideration not only the facts stated, but the facts suppressed.</p> <p>Vendors of mining properties are not responsible for false statements made in prospectuses issued by a mining company to whom the properties had been sold, unless they knew or connived in such statements, or were active iñ putting them in circulation. While they may have known that prospectuses were being issued, they were under no-obligation to read them, or contradict their statements or promises, or interfere with their circulation or distribution.</p> <p>If tlieir title be of record, they are not bound to give notice of their righto in the property to the purchasers of stock, or to refuse the money due upon their contract of sale when it is tendered them.</p> <p>To constitute an estoppel by silence there must not only be an opportunity but an obligation to speak, and the purchase must have been in reliance upon the -conduct of the party sought to be estopped.</p> <p>A person holding a deed of property which he has placed upon record, is not ordinarily bound ‘to diselose his title to persons contemplating purchasing, or making ‘improvements upon the land, unless his silence be deceptive, or accompanied by an intention to defraud.</p>