Same - Liability Of Third Persons

If money wrongfully obtained has passed into the hands of a third person, the law will create a similar promise by him, unless he was a bona fide purchaser or recipient for value; that is, unless he gave a valuable consideration for the money, and had no notice of the fraud or other wrong by which it was obtained.60 If he was a bona fide purchaser or recipient, he is not liable.61 The same is true where goods wrongfully obtained or converted have passed into the hands of a third person, and have been converted into money.62

Same - Money Received Without Fraud Or Wrong

The right to recover money as having been received by the defendant for the use of the plaintiff is not limited to cases in which the money has been obtained by a tortious act, but extends to many cases in which it has been rightfully obtained, but cannot be rightfully kept.63 Where a person, for instance, has obtained money from another under an agreement which the latter is entitled to avoid, and does avoid, because of want or failure of consideration,64 or because of mistake,66 or because of want of capacity by reason of infancy or insanity,68 or because of the other party's failure to perform his part of the agreement,67 the money may be recovered. The money, though obtained without wrong, cannot be rightfully and justly withheld after the contract has been avoided, and the law therefore creates an obligation to repay it.

59 Brisbane v. Dacres, 5 Taunt. 144; Regan v. Baldwin, 126 Mass. 485, 30 Am. Rep. 6S9; Benson v. Monroe, 7 Cush. (Mass.) 125, 54 Am. Dec. 716. See "Payment," Dec. Dig. (Key-No.) § 82; Cent. Dig. §§ 25-',-266.

60 Calland v. Loyd, 6 Mees. & W. 26; Bayne v. U. S., 93 U. S. 642, 23 L. Ed. 997; Mason v. Prendergast, 120 N. Y. 536, 24 N. E. 806; Atlantic Cotton Mills v. Orchard Mills, 147 Mass. 268, 17 N. E. 496, 9 Am. St. Rep. 698; Hindmarch v. Hoffman, 127 Pa. 284, 18 Atl. 14, 4 L. R. A. 368, 14 Am. St Rep. 842; Harrison Mach. Works v. Coquillard, 26 I11. App. 513; ante, p. 295. See "Money Received," Dec. Dig. (Key-No.) § 9; Cent. Dig. § 31.

61 Foster v. Green, 7 Hurl. & N. 8S1. And see Thacher v. Pray, 113 Mass. 291, 18 Am. Rep. 480; Newhall v. Wyatt, 139 N. Y. 452, 34 N. E. 1045. 36 Am. St. Rep. 712; Stephens v. Board, 79 N. Y. 1S7, 35 Am. Rep. 511; State Nat. Bank v. U. S., 114 U. S. 401, 5 Sup. Ct. 888, 29 L. Ed. 149. See "Money Received," Dec. Dig. (Key-No.) § 9; Cent. Dig. § 31.

62 Glyn v. Baker, 13 East, 509; Graham v. Dyster, 6 Maule & S. 1; Down v. Hailing, 4 Barn. & C 330. See "Money Received," Dec, Dig. (Key-No.) § 9; Cent. Dig. § 31.

63 Johnson's Ex'x v. Jennings' Adm'r, 10 Grat. (Va.) 1, 60 Am. Dec. 323; Schaeffer v. Miller, 41 Mont. 417, 109 Pac. 970, 137 Am. St. Rep. 746. See "Money Received," Dec. Dig. (Key-No.) § 6; Cent. Dig. §§ 15, 21-27.

64 Post, p. 640. 65 Post, p. 637; ante, p. 258.

66 Ante, pp.218, 232.

67 Philipson v. Bates' Ex'r, 2 Mo. 116, 22 Am. Dec. 444; post, p. 640. See "Money Paid," Dec. Dig. (Key-No.) §§ 6, 15; Cent. Dig. §§ 21-27, 44-50.