Buyers v. Federal Land Co.

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Buyers v. Federal Land Co.
Court U.S. Circuit Court of Appeals, 8th Circuit
Citation 3 F.2d 9 (1924)
Date decided 1924

Facts:

The plaintiff agreed to buy from the defendant 320 acres of land in Wyoming. He agreed to pay $2,800 in cash, and a balance of $8,400 plus interest over a period of 25 years. The defendant agreed to convey the land to the plaintiff after the contract had been fulfilled. The defendant did not actually own the land, and the plaintiff claimed to have relied upon this misrepresentation to his detriment. He was to also lease the land from the plaintiff. Also, the plaintiff was told by a broker acting as an agent for the defendant that the land was worth $35 per acre. The plaintiff had not seen the land prior to the contract. Once the plaintiff found the land was worth about $15 per acre and the defendant did not actually own the land, he filed this suit.


Holding/Decision:

Remanded the case with directions to enter a decree for the plaintiff.


Rules:

An honest opinion as to the monetary value of property, stated as an opinion is not a fraudulent misrepresentation.When a misrepresentation is material and the promisee relies on the misrepresentation to his detriment, the contract is rescindable.