If the financial situation of the purchaser is such as to justify his belief that he will be able to pay for the goods, his purchase on credit is not of itself fraud, although he is, in fact, insolvent when he makes the purchase.1 The mere fact that vendee knows that he is insolvent and does not disclose such fact is not fraud, where he has a reasonable expectation of paying for the goods purchased;2 still less where vendee does not in fact know that he is insolvent.3 The same rule applies to a purchase of realty without the intention of paying for it.4

Ohio. Wilmot v. Lyons, 49 0. S. 296, 34 N. E. 720 [affirming on other grounds 11 Ohio C. C. 238].

Pennsylvania. Bughman v. Bank, 159 Pa. St. 94, 28. Atl. 209.

This rule has been applied even where vendee was not insolvent but was in such failing circumstances that he could not reasonably expect to pay for the goods purchased. Hudson v. Grocery Co., 105 Ala. 200, 16 So. 693.

2 Blaul v. Wandel, 137 la. 301, 114 N. W. 899.

3 Arkansas. Gavin v. Armistead, 57 Ark. 574, 38 Am. St. Rep. 262, 22 S. W. 431.

Colorado. Burchinell v. Hirsch, 5 Colo. App. 500, 39 Ac. 352.

Massachusetts. People's Savings Bank v. James, 178 Mass. 322, 59 N. E. 807.

New Hampshire. Syracuse Knitting Co. v. Blanchard, 69 N. H. 447, 43 Atl. 637.

Wisconsin. German Nat. Bank v. Princeton State Bank, 128 Wis. 60, 6 L. R. A. (N.S.) 556, 107 N. W. 454.

4 Munzer v. Stern, 105 Mich. 523, 55 Am. St. Rep. 468, 29 L. R. A. 859, 63 N. W. 513.

1 Blaul v. Wandel, 137 la. 301, 114 N. W. 899.

2 Connecticut. Morrill v. Blackman, 42 Conn. 324.

Delaware. Freeman v. Topkis, 1 Marv. (Del.) 174, 40 Atl. 948.

Illinois. People v. Healy, 128 111. 9, 17, 15 Am. St. Rep. 90, 20 N. E. 692; Hacker v. Munroe, 56 111. App. 532.

Indiana. Thompson v. Peck, 115 Ind. 512, 1 L. R. A. 20, 18 N. E. 16; West v. Graff, 23 Ind. App. 410, 55 N. E. 506.

Iowa. Franklin, etc., Co. v. Collier, 89 la. 69, 56 N. W. 279.

Maryland. Edelhoff v. Mfg. Co., 86 Md. 595, 39 Atl. 314.

Michigan. Zucker v. Karpeles, 88 Mich. 413, 50 N. W. 373; Reeder, etc., Co. v. Prylinski, 102 Mich. 468, 60 N. W. 969.

Missouri. Sweet, etc., v. Sullivan, 77 Mo. App. 128.

New York. Morris v. Talcott, 96 N. Y. 100; Rothmiller v. Stein, 143 N. Y.