Story Case

Howard Roe, an infant, sold an automobile which he owned, to William Sykes, giving possession of the machine to Sykes. Two days later Sykes left the automobile in the town square of the city, in which the parties lived, while doing several errands. In the meantime Roe and a friend, Harry Cloud, passed by and seeing the machine, Roe offered to sell it to Cloud. Cloud purchased the machine and drove away with it. When Sykes discovered who had the automobile he had Cloud arrested for taking it. Cloud's only defense was that he purchased from Roe. Is this a good defense?

Ruling Court Case. Chapin Vs. Shafer, Volume 49 New York Reports, Page 407

George Chapin, an infant, executed a chattel mortgage upon his horse to the defendant, Shafer, to secure a prior indebtedness. Thereafter, but on the same day, he sold and delivered the same horse to his father, the plaintiff, E. Chapin. When the mortgage matured the defendant took the horse from the possession of the plaintiff. The plaintiff then brought this action to recover the horse from the defendant.

Decision: The mortgage by the infant was voidable. Consequently he was able to disaffirm it at any time during minority. Any act evincing the intent to disaffirm is sufficient. In this case the absolute sale, made after the mortgage was executed, was an unequivocal act of disaffirmance. This being true, the mortgage became void and whatsoever interest the defendant had acquired revested in the infant. The sale to the infant's father was good. The plaintiff was entitled to recover of the defendant the possession of the horse.

Ruling Law. Story Case Answer

No particular formality or procedure is essential in a disaffirmance by an infant. It may be made in writing or it may be oral. It may be by statements made by the infant, or it may be gathered from his conduct. Words, acts and conduct which evince an intention to disaffirm are sufficient. Anything done by the infant which is inconsistent with the desire to remain bound by the contract will constitute a disaffirmance.

An infant may disaffirm the sale of real property by refusing to give up possession, if he retains it; or if possession has been delivered to a third person, he may disaffirm by entering upon the land and claiming it as his own. The same rule will apply to the sale of personal property. When property, real or personal, has been sold to him, he may disaffirm by refusing to accept the property; or, having accepted it, a return of the property to the owner constitutes a disaffirmance. In the Story Case, Roe had the right to disaffirm the contract in the manner he adopted. Therefore Cloud was acting within his rights when he purchased the machine, and drove away with it. Hence his defense was good.