This section is from the book "A Treatise On The Construction Of The Statute Of Frauds", by Causten Browne. Also available from Amazon: A treatise on the construction of the Statute of frauds.
2 Story Eq. Jur. § 1201 a. See Perry Trusts, § 135; Burden v. Sheridan, 36 Iowa, 125; Miazza v. Yerger, 53 Miss. 135; Nestal v. Schmid, 29 N. J. Eq. 458. See Watson v. Erb, 33 Ohio St. 35; Bauman v. Holz-hausen, 26 Hun (N. Y.) 505; James v. Smith, L. R. 1 Ch. D. 1891, 384.
3 See Pinnock v. Clough, 16 Vt. 501; Jackman v. Ringland, 4 Watts & S. (Pa.) 149; Taliaferro v. Taliaferro, 6 Ala. 406; Moore v. Green, 3 B. Mon. (Ky.) 407. Other cases of this nature are Botsford v. Burr, 2 Johns. (ST. Y.) Ch. 405; Dorsey v. Clarke, 4 Harr. & J. (Md.) 551; Trap-nail v. Brown, 19 Ark. 39; Kellum v. Smith, 33 Pa. St. 158; Levy v. Brush, 45 N. Y. 589; Spencer v. Lawton, 14 R. I. 494.
§ 96 a. It has been held that a trust arises when the one who has got the land has been enabled to do it only by dint of his promise to convey it to another, upon the faith of which promise the latter has parted with some interest in the property in question. Thus, where a man who was in possession of land under contract for its purchase, was induced to abandon that interest, by an oral promise to buy and hold the land for him, the trust relation thus created was held a good defence to an action afterward brought by the party who had made the promise, to deprive him of possession.1 And where one party, by virtue of his previous relation to the property, has an equitable interest in it, as, for example, the mortgagor of an estate about to be sold under the mortgage, another who has promised to buy it in for the benefit of the party interested will be treated as a trustee and affected by the mortgagor's equity.2
1 Heard v. Pilley, L. R. 4 Ch. 548; Cave v. Mackenzie, 46 L. J. (Ch.) 564. And see DeMallagh v. DeMallagh, 77 Cal. 126.
2 Pillsbury v. Pillsbury, 17 Me. 107; Sweet v. Jacocks, 6 Paige (N. Y.) 355; Firestone v. Firestone, 49 Ala. 128; Chastain v. Smith, 30 Ga. 96. See Follansbe v. Kilbreth, 17 111. 522; Jenkins v. Eldredge, 3 Story, 289; Dennis v. McCagg, 32 111. 429; Heacock v. Coatesworth, Clarke (N. Y.) Ch. 84; Taylor v. Salmon, 4 Myl. & C. 134; Rives v. Lawrence, 41 Ga. 283; Moore v. Pickett, 62 111. 158; Bosseau v. O'Brien, 4 Bissell (C C.) 395; Johnson v. Brooks, 93 N. Y. 337; Caruthers v. Williams, 21 Fla. 485; Colt v. Clapp, 127 Mass. 476. But see Roughton v. Rawlings, 88 Ga. 819.
1 Dodge v. Wellman, 1 Abb. (N. Y.) App. Dec. 512. See Church v. Kidd, 3 Hun (N. Y.) 254; Boynton v. Housler, 73 Pa. St. 453; Payne v. Patterson, 77 Pa. St. 134; Wolford v. Herrington, 86 Pa. St. 39.
2 Ryan v. Dox, 34 N. Y. 307. See Sandford v. Norris, 4 Abb. (N. Y.) App. Dec. 144; Judd v. Mosely, 30 Iowa, 423; Ragan v. Campbell, 2 Mackey (D. of C.) 28; Fishback v. Green, 87 Ky. 107; Cutler v. Babcock, 81 Wisc. 191.