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any cause, or (5) by consent of all the other parties. A stipulation that errors of description shall not avoid a contract, or shall be the subject of compensation, or both, does not take away the right of rescission for fraud, nor for mistake, where such mistake is in a matter essential to the inducement of the contract, and is not capable of exact and entire compensation. Rescission, when not effected by consent, can be accomplished only by the use, on the part of the party rescinding, of reasonable diligence to comply with the following rules: (1) he must rescind promptly, upon discovering the facts which entitle him to rescind, if he is free from duress, menace, undue influence, or disability, and is aware of his right to rescind, and (2) he must restore to the other party everything of value which he has received from him under the contract, or must offer to restore the same upon condition that such party shall do likewise, unless the latter is unable or positively refuses to do so.'

99 98

Next, the codes take up the subject of rescission by order or decree of court. They provide that the rescission of a written contract may be adjudged, on application of the party aggrieved, in any of the cases mentioned in that section (quoted above) which enumerates the causes for which a party may rescind on his own initiative, and also "where the contract is unlawful for causes not apparent upon its face, and the parties were not equally in fault, or when the public interest will be prejudiced by permitting it to stand." Further, "rescission cannot be adjudged for mere mistake, unless the party against whom it is adjudged can be restored to substantially the same position as if the contract had not been made," and "on adjudging the rescission of a contract, the court may require the party to whom such relief is granted to make any compensation to the other party which justice may require." "9

99

It is likewise provided that "a written instrument, in

98 Civ. Code Cal., §§ 1689-1691; Rev. Civ. Code Mont., §§ 50635065; Rev. Civ. Code N. Dak., §§ 5378-5380; Rev. Civ. Code S. Dak., §§ 1283-1285; Rev. Laws Okl., 1910, §§ 984-986.

99 Civ. Code Cal., §§ 3406-3408; Rev. Civ. Code Mont., §§ 61126114; Rev. Civ. Code N. Dak., §§ 6623-6625; Rev. Civ. Code S. Dak. 88 2353-2355.

respect to which there is a reasonable apprehension that if left outstanding it may cause serious injury to a person against whom it is void or voidable, may, upon his application, be so adjudged, and ordered to be delivered up or canceled," and that "an instrument, the invalidity of which is apparent upon its face or upon the face of another instrument which is necessary to the use of the former in evidence, is not to be deemed capable of causing injury, within the provision of the last section." 100 We may conclude this review by quoting some miscellaneous provisions. touching rescission, which are found in the codes of one or more of the states mentioned. Thus, "on an agreement for sale with warranty, the buyer has a right to inspect the thing sold, at a reasonable time, before accepting it, and may rescind the contract if the seller refuses to permit him to do so. The breach of a warranty entitles the buyer to rescind an agreement for sale, but not an executed sale, unless the warranty was intended by the parties to operate as a condition." 101 "If a buyer of personal property does not pay for it according to contract, and it remains in the possession of the seller after payment is due, the seller may rescind the sale, or may enforce his lien for the price." 102 "The employment by the seller of any person to bid at a sale by auction, without the knowledge of the buyer, without an intention on the part of such bidder to buy, and on the part of the seller to enforce his bid, is a fraud upon the buyer which entitles him to rescind his purchase." 108

All of these codes also contain detailed provisions respecting the rescission of contracts made by minors and by persons of unsound mind. These provisions will be quoted at length in the chapters specifically devoted to those topics. At present, it may be sufficient to state their general tenor, as follows: A minor is not permitted to disaffirm a contract for the reasonable value of things necessary for

100 Civ. Code Cal., §§ 3412, 3413; Rev. Civ. Code Mont. §§ 6115, 6116; Rev. Civ. Code S. Dak., §§ 2356, 2357. And see Rev. Civ. Code N. Dak., § 6626.

101 Civ. Code Cal., § 1785; Rev. Civ. Code Mont., § 5121.
102 Civ. Code Cal., § 1749; Rev. Civ. Code Mont., § 5096; Rev.
Rev. Civ. Code S. Dak., § 1314.

Civ. Code N. Dak., § 5410;
103 Civ. Code Cal., § 1797; Rev. Civ. Code Mont., § 5127.

his support or that of his family, entered into by him when not under the care of a parent or guardian able to provide for him or them. Neither can he disaffirm an obligation, otherwise valid, entered into by him under the express authority or direction of a statute. But except in these two cases, a contract made by a minor may be disaffirmed by the minor himself either before his majority or within a reasonable time afterwards (but in South Dakota and Oklahoma, "before his majority or within one year's time afterwards"), or in case of his death within that period, by his heirs or personal representatives. As to restoration by the minor of what he has received under the contract, it is provided in all the states of this group, except Montana, that such restoration shall be required only in case the minor was over the age of eighteen at the time of making the contract. In Montana, it appears to be required in all cases of disaffirmance of an infant's contracts.104

In these states, a person entirely without understanding has no power to make a contract of any kind, but is liable for the reasonable value of things furnished to him which are necessary for the support of himself or his family. A conveyance or other contract of a person of unsound mind, but not entirely without understanding, made before his incapacity has been judicially determined, is subject to rescission in the same way and for the same causes as other contracts; but after his incapacity has been so determined, he can make no conveyance or contract, nor delegate any power or waive any right, until his restoration to capacity. In some states, such restoration must have been "judicially determined," but in others, a certificate from the medical officer of any insane asylum to which the patient may have been committed, showing that he has been discharged cured and restored to reason, "shall establish the presumption of the legal capacity of such person from the time of such discharge.'

105

104 Civ. Code Cal., §§ 35-37; Rev. Civ. Code Idaho, §§ 2603-2605; Rev. Civ. Code N. Dak., §§ 4015-4017; Rev. Civ. Code S. Dak., §§ 1719; Rev. Laws Okl., 1910, §§ 885-887; Rev. Civ. Code Mont., §§ 3592

105 Civ. Code Cal., §§ 38-40; Rev. Civ. Code Mont., §§ 3595-3597;

§ 17. Same; Georgia.-The material parts of the Civil Code of Georgia (1910) relating to the rescission of sales. and other contracts, are as follows:

"Fraud or duress, by which the consent of a party has been obtained to a contract of sale, voids the sale. Fraud may exist by misrepresentation by either party, made with design to deceive, or which does actually deceive the other party, and in the latter case, such misrepresentation voids the sale, though the party making it was not aware that his statement was false. Such misrepresentation may be perpetrated by acts as well as words, and by any artifice designed to mislead. A misrepresentation not acted on is not ground for annulling a contract." (Secs. 4112, 4113.) "Concealment of material facts may in itself amount to fraud (1) when direct inquiry is made and the truth evaded, (2) when from any reason one party has a right to expect full communication of the facts from the other, (3) where one party knows that the other is laboring under a delusion with respect to the property sold or the condition of the other party and yet keeps silence, (4) where the concealment is of intrinsic qualities of the article which the other party, by the exercise of ordinary prudence and care, could not discover." (Sec. 4114.) "Duress consists in any illegal imprisonment, or legal imprisonment used for an illegal purpose, or threats of bodily or other harm, or other means amounting to or tending to coerce the will of another, and actually inducing him to do an act contrary to his free will." (Sec. 4116.) "Where one who is insolvent purchases goods, and, not intending to pay therefor, conceals his insolvency and intention not to pay, the vendor may disaffirm the contract and recover the goods, if no innocent third person has acquired an interest in them." (Sec. 4111.)

"Mistake of law, if not brought about by the other party, is no ground for annulling a contract of sale. Mistake of a material fact may in some cases justify a rescission of the contract; mere ignorance of a fact will not." (Sec. 4115.)

Rev. Civ. Code N. Dak., §§ 4018-4020; Rev. Civ. Code S. Dak., §§ 20-22; Rev. Laws Okl., 1910, §§ 888-890; Rev. Civ. Code Idaho, §§ 2606-2608.

"Mere ignorance of law, on the part of the party himself, where the facts are all known, and there is no misplaced confidence, and no artifice or deception or fraudulent practice is used by the other party either to induce the mistake of law or to prevent its correction, will not authorize the intervention of equity. An honest mistake of law as to the effect of an instrument, on the part of both contracting parties, when such mistake operates as a gross injustice to one and gives an unconscientious advantage to the other, may be relieved in equity. A mistake of law, in the draftsman or other agent, by which the contract as executed does not fulfill or violates the manifest intention of the parties to the agreement, is relievable in equity." (Secs. 45754577.) "In all cases of a mistake of fact material to the contract, or other matter affected by it, if the party complaining applies within a reasonable time, equity will relieve." (Sec. 4580.) "If the party by reasonable diligence could have had knowledge of the truth, equity will not relieve; nor will the ignorance of a fact, known to the opposite party, justify an interference, if there has been no misplaced confidence, nor misrepresentation nor other fraudulent act." (Sec. 4581.) "Ignorance by both parties of a fact does not justify the interference of the court; nor will a mistake in judgment or opinion merely, as to the value of the property, authorize such interference." (Sec. 4582.)

In case of a deficiency in the quantity of the land sold, "the purchaser may demand a rescission of the sale or an apportionment of the price according to relative value. If the purchaser loses part of the land from defect of title, he may claim either a rescission of the entire contract, or a reduction of the price according to the relative value of the land so lost." (Secs. 4122, 4124.)

"A rescission of the contract by consent, or a release by the other contracting party, is a complete defense. A contract may be rescinded at the instance of the party defrauded; but in order to the rescission, he must promptly, upon discovery of the fraud, restore or offer to restore to the other whatever he has received by virtue of the contract, if

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