Hagge v. Drew, 27 Cal. 2d 368 (1945)

Citation: Hagge v. Drew, 27 Cal. 2d 368 (1945)
Parent Document: Hagge v. Drew, 27 Cal. 2d 368 (1945)
Jurisdiction: California (state)
Effective Date: 1945-12-14
Original Source: https://www.courtlistener.com/opinion/1114867/hagge-v-drew/ ↗

Full Text

1,314 chars

from an asserted concealment by defendants or nondisclosure to plaintiffs of the price the former paid for the property to the trustee in bankruptcy and their sale a short time after to plaintiffs for nearly double the price. The rule involved is stated as follows: “ (1) There is no privilege of non-disclosure, by a party who . . . (b) knows that the other party is acting under a mistake as to undisclosed material facts, and the mistake if mutual would render voidable a transaction caused by relying thereon, . . . .” (Rest., Contracts, § 472.) And also “A party entering into a bargain is not bound to tell everything he knows to the other party, even if he is aware that the other is ignorant of the facts; and unilateral mistake, of itself, does not make a transaction voidable (see § 503). But if a fact known by one party and not the other is so vital that if the mistake were mutual the contract would be voidable, and the party knowing the fact also knows that the other does not know it, non-disclosure is not privileged and is fraudulent.” (Rest., Contracts, § 472(1) (b) com. b.) (See also Herzog v. Capital Co., ante, p. 349 [164 P.2d 8]; Rothstein v. Janss Investment Corp., 45 Cal.App.2d 64 [113 P.2d 465]; Clauser v. Taylor, 44 Cal.App.2d 453 [112 P.2d 661]; Kretzschmar v. Janss Investment Co.,

Other Sections in This Document (51)

Full Text