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Articles 1 - 30 of 45
Full-Text Articles in Law
Corporations - Rescission Of Contract Procured Through Fraud
Corporations - Rescission Of Contract Procured Through Fraud
Michigan Law Review
P purchased shares of stock in S Company through the fraud and misrepresentation of his agents in collusion with the agents of the S Company. Upon discovery of the fraud, P tendered back a number of shares equal to the number received by himself and his innocent associates. In the meantime, P had resold part of the shares at a higher price. Held, P must also tender the profit resulting from the resale and subsequent purchase of equivalent shares in a fallen market, together with any dividends paid on stock and interest from date of payment. Marr v. Tumulty …
Contracts - Illegality - Contract To Relinquish Custody Of Child
Contracts - Illegality - Contract To Relinquish Custody Of Child
Michigan Law Review
The plaintiff declared on a contract between her father, Thomas Smith, and J. F. and A. T. Mulkey, in which the parent contracted to relinquish all control over the plaintiff, a minor, in consideration for which J. F. and A. T. Mulkey agreed to adopt the child and leave their property to her upon the death of the survivor. The contract was fully performed by the child's parent, but J. F. and A. T. Mulkey failed to adopt the child, and made no provision for her in the distribution of their property. In a suit by the plaintiff at the …
A Comparative Study Of The Statutory Survival Of Tort Claims For And Against Executors And Administrators, Alvin E. Evans
A Comparative Study Of The Statutory Survival Of Tort Claims For And Against Executors And Administrators, Alvin E. Evans
Michigan Law Review
The problem of the survival of actions after death of one of the parties is unfortunately not merely a mater of history. Like the poor, it is always with us. We can no longer profitably wave aside the problems likely to be presented by a comparative study of American legislation on survival by stating that our legislation covers the same general field as do the English statutes of 4 Edward III and 3 and 4 William IV and others of less importance. There is a need for an outline of these American statutes and for a rationalization of the principles …
Equity-Power To Reform-Effect Of Statute Of Frauds
Equity-Power To Reform-Effect Of Statute Of Frauds
Michigan Law Review
The plaintiff made an oral contract to sell certain shares of stock to the defendant at a price of $1,160 a share, as a result of a telephone conversation. On the same day the plaintiff sent the defendant a written confirmation of the sale, in which the price of $1,060 a share was inserted by mistake. The New York Statute of Frauds makes such a contract unenforceable unless a note or memorandum thereof be in writing. Held, that although the parties intended to make a memorandum of the oral contract which they had made, the memorandum was of a …
Infants-Liability On Tort Arising Out Of Contract
Infants-Liability On Tort Arising Out Of Contract
Michigan Law Review
Plaintiff was the assignee of a conditional sales contract for an automobile purchased by defendant, a minor. The contract contained a provision that the car should not be used in connection with any violation of any state or federal law. The defendant was apprehended by federal officers while using the car for the illegal transportation of liquor. The car was seized and later forfeited, and the plaintiff brought a tort action for the conversion of the car. Held, the infancy of the conditional buyer was no defense to an action for conversion by a wilful, illegal use. Vermont Acceptance …
Sales--Distinction Between Conditional Sale And Chattel Mortgage-Michigan Rule
Sales--Distinction Between Conditional Sale And Chattel Mortgage-Michigan Rule
Michigan Law Review
The petitioner sold a truck under an unrecorded contract which provided that title was to remain in him until the buyer made full payment, and that in event of default the whole sum was to become due immediately with the right of reclamation. The buyer subsequently went into bankruptcy and the seller petitioned for reclamation of the truck from the trustee. Held, that since the contract under the Michigan rule constituted a chattel mortgage so that failure to record it made it ineffective against creditors, the petition should be denied. In re Central States Freight Corporation (E. D. Mich. …
Deeds-Delivery In Escrow-Effect On Income Tax
Deeds-Delivery In Escrow-Effect On Income Tax
Michigan Law Review
A taxpayer, by written contract, had agreed to sell a 99-year leasehold for $195,000. $50,000 was to be paid in 1920, and the balance in 1921. The first payment was made in October, 1920, and a deed put in escrow, to be handed to the grantee on payment of the balance. The transaction was fully carried out as per contract, and the taxpayer was assessed income tax on the entire $195,000 as of 1920. Held, the deed having been delivered in escrow, the title relates back to the original delivery on performance of the condition, showing a completed transaction …
Contracts-Statute Of Frauds-Estoppel
Contracts-Statute Of Frauds-Estoppel
Michigan Law Review
Plaintiff, the lessee of a building, with the consent of the owner, sub-let it for an increased rental. On the oral representation of the plaintiff that he would assign the sub-lease, which had one year and six months to run, defendant purchased the property. Plaintiff then refused to assign and claimed the rental under the sub-lease. The lower court excluded evidence of the oral promise on the ground that it was unenforceable under the Statute of Frauds. On appeal, it was held, one justice dissenting, that the proof of the oral promise to assign the lease should have been …
Constitutional Law-Just Compensation Under The Fifth Amendment- Rights Of Russian Citizen
Constitutional Law-Just Compensation Under The Fifth Amendment- Rights Of Russian Citizen
Michigan Law Review
The petitioner was a corporation organized under the laws of the Russian Czarist government, and in January, 1917, became an assignee for value of contracts for the construction of two vessels. In August, 1917, the United States requisitioned these contracts, and the vessels being constructed thereunder, for use in the War. The requisition was made under an act of Congress of June 15, 1917, 40 Stat. 183, which provided for compensation as follows: "Whenever the United States shall * * * requisition any contract * * * or take over any ship, * * * in accordance with the provisions …
Conflict Of Laws-Damages-Obligation Payable In Russian Rubles
Conflict Of Laws-Damages-Obligation Payable In Russian Rubles
Michigan Law Review
In an action in New York to establish a claim against a Russian insurance company on a policy payable in rubles in Russia, the following history of Russian money appeared. Before the revolution, the gold ruble of the Empire had been supplanted by a paper currency of depreciated value. The Soviets, at the beginning of their regime, instituted a paper currency which had also greatly decreased in value. At the time the policy became due, this latter currency was still circulating, and in addition, a gold coinage with notes redeemable in gold had been established. From time to time the …
The Liability For Taxes And Assessments Between Vendor And Purchaser
The Liability For Taxes And Assessments Between Vendor And Purchaser
Michigan Law Review
This note is concerned with the rights and duties, inter se, of vendor and purchaser with respect to the burden of taxation. The problem presents itself in the simplest form when it arises in a suit for specific performance, the question being whether the contract obligated vendor to remove the lien of certain taxes (or allow the purchaser a credit against the purchase price), or, on the other hand, obligated purchaser to pay the whole price for the encumbered land (or pay vendor, in addition to purchase price, the amount of tax previously paid by the latter). The question …
Vendor And Purchaser-Vendee's Lien-Failure Of Title
Vendor And Purchaser-Vendee's Lien-Failure Of Title
Michigan Law Review
The vendee of a contract for the sale of land discovered that there was great doubt as to whether the buildings were within the bounds described in the contract and whether there were encroachments. Alleging that these defects could not be corrected, he brought a bill in equity seeking cancellation of the contract and praying for a lien upon the lands for the money paid and the expenses incurred. The vendor counter-claimed for specific performance. Held, where the purchaser properly invokes the jurisdiction of the court and where it would be inequitable to compel specific performance, so far as …
Contracts-Breach Of Independent Promise As Ground For Recscission
Contracts-Breach Of Independent Promise As Ground For Recscission
Michigan Law Review
Having interested plaintiff in certain debentures, defendant, in return for a promise of one-fourth of any profit which plaintiff might receive, agreed to indemnify him against loss. By profit was meant any bonuses paid, and the difference between purchase and redemption price. When the call date was extended beyond the original period plaintiff gave notice that he would sell and hold defendant on his guaranty, to which defendant protested that no liability arose before the redemption date and that he would no longer consider himself bound. Plaintiff sold, but subsequently repurchased. The corporation having been wound up, plaintiff sued on …
Sales - Warranty - Theory Of Implied Assignment
Sales - Warranty - Theory Of Implied Assignment
Michigan Law Review
In the recent case of Wood v. Advance Rumely Thresher Co., the following relevant facts appeared: the plaintiff signed an order for a tractor, knowing that the defendant's agent, who solicited the order, had no power to make a binding contract, and knowing, from the face of the order, that there would be no contract till it was accepted at the defendant's home office. The agent's employment was terminated before he sent the order in, so he turned it over to another dealer. The latter did not forward the order to the defendant, but wrote a new one, signed …
Workmen's Compensation Acts-Single Side Venture As A Business Of The Employer
Workmen's Compensation Acts-Single Side Venture As A Business Of The Employer
Michigan Law Review
The plaintiffs, whose regular occupation was that of farming, were under a contract to move a house. The claimant, employed by the plaintiffs to assist in the undertaking (it does not appear whether he was regularly employed by them as a farmhand), was injured when a bridge, over which the house was being moved, fell into the river. Held, the injury was not compensable under the Workmen's Compensation Act since the employment was not "in the course of a trade, business, profession, or occupation'' of the employers. Vandervort v. Industrial Commission (Wis. 1931) 234 N.W. 492.
Review: A Textbook On Law And Business, J. Wayne Ley
Review: A Textbook On Law And Business, J. Wayne Ley
Michigan Law Review
A Book Review on A TEXTBOOK ON LAW AND BUSINESS By William H. Spencer
Conflict Of Laws--Contracts--Excuses For Non-Performance
Conflict Of Laws--Contracts--Excuses For Non-Performance
Michigan Law Review
Libellant sought to recover on a contract made in Duluth for the shipment of grain by defendant from Duluth to Montreal. The grain was reshipped by defendant at Port Colbourne, Ontario, and was sunk in the St. Lawrence River. Canadian Water Carrier of Goods Act, sec. 6 (9-10 Edw. VII, c. 81), provides that if the owner of any ship carrying merchandise from any port in Canada exercises due diligence to make the ship in all respects seaworthy and properly manned, neither the ship, owner, agent, nor charterer shall be liable for faults in navigation. The court held defendant was …
Contracts-Liability Of Assignee For Unfullfilled Duties Of His Assigned
Contracts-Liability Of Assignee For Unfullfilled Duties Of His Assigned
Michigan Law Review
Plaintiff contracted for the sale of lands with H., title being reserved in the plaintiff. The contract purported to bind the assigns of both parties, and contained an acceleration provision in favor of the plaintiff on default of any payment. Under North Dakota law the parties were substantially in the position of vendor-mortgagee and vendee-mortgagor. H then assigned to the defendant who made payments to the plaintiff, and there was also testimony indicating that in the printed form of the assignment defend ant had promised the assignor to assume the duties under the original contract. Upon default and foreclosure sale …
Conflict Of Laws-Contracts-Married Woman's Capacity
Conflict Of Laws-Contracts-Married Woman's Capacity
Michigan Law Review
Defendant, a married woman, domiciled in Idaho, entered into a guaranty contract in California with the plaintiff. In a bankruptcy proceeding brought against her in the district court for Idaho, she denied the validity of the obligation because it was not within the exceptions in Idaho law to the common law disability of a married woman to contract. Under California law the contract was valid. The agreement stipulated that it should be construed according to California law. Held, the capacity of the defendant to enter into the contract is governed by the law of California, the place where it …
Equity - Conditional Rescission For Unilateral Mistakes
Equity - Conditional Rescission For Unilateral Mistakes
Michigan Law Review
Lessee submitted a lease containing an option for renewal to the attorney of the lessor. Being informed by 'the lessor's attorney that the lessor probably would not accept the lease with the option for renewal, the lessee submitted another without this feature. The lessor by mistake signed the lease containing the option and mailed it to the lessee. Lessor sued for rescission. Held, rescission granted on condition that the lessor give the lessee a privilege of taking the lease the lessor intended to sign. Miller v. Stanich (Wis. 1930) 233 N.W. 753.
Contracts - Rescission Of Contract To Rescind
Contracts - Rescission Of Contract To Rescind
Michigan Law Review
The parties entered into an installment contract for sale of meal of a certain quality. Provision was made for arbitration of disputes arising under the agreement. After several deliveries, the vendor consented to cancellation of the remainder of the contract upon the buyer's agreeing to pay £782 at four specified dates. This agreement was made under mutual mistake as to the defective quality of the goods, which would have justified repudiation of the contract. Before the adulteration was discovered, the seller had paid £500 for a release from a supply contract with a third person and the buyer had paid …
Contracts-Liability Of Purchaser At Forclosure Sale For Obligations Of Forclosed Railroad
Contracts-Liability Of Purchaser At Forclosure Sale For Obligations Of Forclosed Railroad
Michigan Law Review
The BN Company executed a mortgage on certain railroad properties as security for a bond issue of the Company. Thereafter the Lehigh Company leased the mortgaged property for a term of 999 years. The lease stipulated that "all its covenants are to apply to the parties hereto, and to the several successors and assigns * * * of the parties or their properties." The lessee covenanted therein to indorse a guaranty of payment on the bonds of the BN Company. and did so indorse. Subsequently a mortgage executed by Lehigh prior to the lease with the BN Company, but which …
Contracts-Duration Of Offer Specifying A Definite Limit
Contracts-Duration Of Offer Specifying A Definite Limit
Michigan Law Review
By a letter dated Jan. 29, 1929, A offered to exchange certain lands with B and stated in the letter, "I will give you eight days in which to accept or reject this offer." The letter was received on Feb. 2 and the acceptance was telegraphed on Feb. 8, reaching A on Feb. 9. Held, B could maintain a suit for specific performance. Since an offer is not complete until received B accepted within eight days. Caldwell v. Cline (W. Va. 1930) 156 S.E. 55.
Quasi-Contracts-Recovery Of Insurance Paid Under Mistake Of Fact
Quasi-Contracts-Recovery Of Insurance Paid Under Mistake Of Fact
Michigan Law Review
The plaintiff insured articles of Jewelry for the defendant against loss. Defendant was unable to find a necklace covered by the policy in question and after an unsuccessful search the parties entered into an agreement whereby the defendant consented to accept other jewelry, equal in value to the necklace, as compensation for the loss. Later the necklace was found, and the plaintiff seeks rescission of the agreement and specific restitution of the articles delivered pursuant thereto. Held, payment made in settlement of an insurance claim may not be rescinded on the basis of mistake of fact as to the …
Contracts--Risk Of Loss Under Executory Land Contract--Disposition Of Insurance Process.
Contracts--Risk Of Loss Under Executory Land Contract--Disposition Of Insurance Process.
Michigan Law Review
When buildings, which are part of the subject matter of an executory contract for the sale of land, are accidentally destroyed by fire, there immediately arises the question of who, as between the vendor and the purchase, shall bear the loss. The majority of courts in this country place it on the purchaser. This was the result reached in the leading English case of Paine v. Meller and has been adopted in the following states: California, Indiana, Iowa, Kentucky, Louisiana, Maryland, Missouri, Montana, Nebraska, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, South Dakota and West Virginia. …
Injunction-Breach Of Negative Covenant-Adequate Remedy At Law
Injunction-Breach Of Negative Covenant-Adequate Remedy At Law
Michigan Law Review
The defendant, an owner of a gasoline station, entered into a contract with the plaintiff whereby he agreed to buy "all motor fuels handled, sold, or required" at his station from the plaintiff. He further agreed not to "sell, or allow to be sold on his premises * * * any other brands of motor fuel than those of the seller [plaintiff]." Before the expiration of the contract the defendant notified the plaintiff that he would no longer be bound by the contract. The lower court dismissed a bill praying for an injunction restraining the defendant from violating the negative …
Mechanic's Liens-Time Of Filing-Completion Of Work
Mechanic's Liens-Time Of Filing-Completion Of Work
Michigan Law Review
The plaintiff contracted to do plumbing work, the contract containing a one-year guaranty. The work was finished in December, 1926, and in February, 1928, two months after the guaranty had expired, the plaintiff at the request of the owner (defendant), gratuitously made some minor repairs. In March, 1928, he filed a claim for a lien for the entire contract. Held, the work was completed when the guaranty expired and the plaintiff had no lien, since his claim was filed after the statutory limit from the completion of the work. Bohinek v. Smith (Ohio App. 1930) 172 N.E. 852.
Public Utilities--Confiscatory Rate-Operation Enforced In Accord With Contract Between Predecessor And Municipality
Michigan Law Review
This action was brought to compel the defendant to operate in Decatur about a mile of its interurban system at an admittedly confiscatory rate. Defendant's predecessor, chartered by the Georgia legislature to acquire and operate street railways, contracted with plaintiff, in return for permission to remove one Decatur line, to operate the line involved and never charge more than a five-cent fare. The cost of service, aside from compensation to capital, exceeded the revenue. With a paving assessment imminent, the carrier offered to surrender its permit to operate, and notified plaintiff that it would discontinue service. The city refused to …
Specific Performance-Uncertainty Of Contract
Specific Performance-Uncertainty Of Contract
Michigan Law Review
Bill for specific performance of a contract made with defendant's assignor. Defendant was the assignee of some leases, and took with notice of the contract with his assignor. By the contract the owner of the leases "sold, and does sell" to plaintiff all the natural gas that he might produce under them. Either party was given the right to terminate if production fell below a certain point, and it was also provided that unless terminated under this provision, the contract was to remain in force during the entire time that gas was produced "in paying or marketable quantities." Defendant showed …
Sales-Conditional-Resale By Seller
Sales-Conditional-Resale By Seller
Michigan Law Review
Plaintiff bought a truck under a conditional sales contract. Defendant, as assignee of the vendor, retook possession of the truck when plaintiff defaulted in his payments and undertook by sale of the truck to foreclose plaintiff's rights therein. The Uniform Conditional Sales Act, in force in the jurisdiction, provided for a compulsory resale at public auction by the retaking seller. He was required to give notice of the sale by registered letter to the buyer, by newspaper advertisement, and by three notices posted in public places. Defendant failed to post the three notices. Plaintiff then brought suit for conversion and …