Source: https://chestofbooks.com/business/law/Handbook-Law-Of-Contracts/Champerty-Part-2.html
Timestamp: 2019-04-19 01:09:31+00:00

Document:
78Greenh. Pub. Pol. 294; Edwards v. Estell, 48 Cal. 194; Byrd v. Hughes, 84 I11. 174, 25 Am. Rep. 442; Forsyth v. Woods, 11 Wall. 4S4, 20 L. Ed. 207; Rice v. Williams (C. C.) 32 Fed. 437; Gleason v. Railroad Co. (Iowa) 43 N. W. 517; Smith v. Humphreys, 88 Me. 345, 34 Atl. 166; Smythe's Estate v. Evans, 209 I11. 376, 70 N. E. 906; McClure v. Ullmann, 102 Mo. App. 697, 77 S. W. 325; Smith v. David B. Crockett Co., 85 Conn. 2S2, 82 Atl. 569, 39 L. R. A. (N. S.) 1148, in which "graft" is denned by Hall, C. J., as "the receiving of personal gain without rendering compensatory services, by persons holding positions of trust and confidence, and * * * but a form of bribery." A good illustration of such an agreement is where a broker employed to sell property is also employed by the person to whom he sells to buy, thus to receive a commission from both parties. Rice v. Wood, 113 Mass. 133, 18 Am. Rep. 459; Everhart v. Searle, 71 Pa. 256. And see Holcomb v. Weaver, 136 Mass. 265. So, also, where a broker is employed to sell land, an agreement with a person who wishes to buy, by which the broker is to introduce him to the principal, and receive part of the land when purchased, is void. Smith v. Townsend, 109 Mass. 500. An agreement between real-estate agents representing different principals to divide commissions in case they effect sale is void. LEVY v. SPENCER, 18 Colo. 532, 33 Pac. 415, 36 Am. St. Rep. 303, Throckmorton Cas. Contracts, 259; Howard v. Murphy, 70 N. J. Law, 141, 56 Atl. 143, 1 Ann. Cas. 571. See Tiffany, Ag. 415 et seq. An agreement by a client releasing his attorney from all the duties of the relationship is void. In re Boone (C. C.) 83 Fed. 944. A stipulation in a contract that false representations used in procuring it shall not affect its validity is itself invalid. Hofflin v. Moss, 67 Fed. 440, 14 C. C. A. 459. See "Contracts," Dec. Dig. (Key-No.) § 113; Cent. Dig. §§ 521-541.
79 Spinks v. Davis, 32 Miss. 152. See, also, Harrington v. Dock Co., 3 Q. B. Div. 549; Atlee v. Fink, 75 Mo. 100, 42 Am. Rep. 385. The rule does not apply to a case in which a broker is acting as agent of both parties with their knowledge. Greenkood, Pub. Pol. rule 202; Shaw v. Andrews, 9 Cal. 73; Pugsley v. Murray, 4 E. D. Smith (N. Y.) 245; Bonwell v. Howes (City Ct. N. Y.) 1 N. Y. Supp. 435; Bell v. McConnell, 37 Ohio St. 396, 41 Am. Rep. 528. See "Contracts," Dec. Dig. (Key-No.) § 113; Cent. Dig. §§ 521-541.
80 Cunningham v. Cunningham, 18 B. Mon. (Ky.) 24, 68 Am. Dec. 718 (guardian); Ellicot v. Chamberlain, 38 N. J. Eq. 604, 48 Am. Rep. 327 (executor); Currier v. Clark, 19 Colo. App. 250, 75 Pac. 927 (executor). See "Contracts," Dec. Dig. (Key-So.) § 113; Cent. Dig. §§ 521-541.
81 Aughey v. Windrem, 137 Iowa, 315, 114 N. W. 1047, per Ladd, C. J. See "Contracts," Dec. Dig. (Key-No.) § 113; Cent. Dig. §§ 521-541.
82 Fidelity & Deposit Co. of Md. v. Butler, 130 Ga. 225, 60 S. E. 851, 16 L. R. A. (N. S.) 994 (contract of guardian to deposit ward's money in bank and not to draw it out except upon the joint check of himself and surety). See "Contracts," Dec. Dig. (Key-No.) § 113; Cent. Dig. §§ 521-541.
83 Ready v. United Rys. Co., 57 Or. 325, 100 Pac. 658, 108 Pac. 197, holding, however, that the contract will be valid if all persons interested have knowledge of it and expressly or impliedly assent to it Contracts for the establishment of a "voting trust," by which stockholders agree that the trustees named shall have power to vote the stock if parties to the agreement have been held void in some states, on the ground that a contract which separates the beneficial ownership of corporate stock from its legal title and control is contrary to public policy. Morel v. Hoge, 130 Ga. 625, 61 S. E. 487, 16 L. R. A. (N. S.) 1136, 14 Ann. Cas. 935; Warren v. Pirn, 66 N. J. Eq. 353, 59 Atl. 773; Bridgers v. First Nat. Bank, 152 N. C. 293, 67 S. E. 770, 31 L. R. A. (N. S.) 1199; Sheppard v. Rockingham Power Co., 150 N. C. 776, 64 S. E. 894. But in other cases such agreements have been sustained. Gray v. Bloomington & N. Ry., 120 I11. App. 159; Boyer v. Nesbitt, 227 Pa. 398, 76 Atl. 103, 136 Am. St. Rep. 890. See "Contracts," Dec. Dig. (Key-No.) § 121; Cent. Dig. § 504.
84 Bias v. Atkinson, 64 W. Va. 486, 63 S. E. 395. See "Contracts," Deo. Dig. (Key-No.) § 121; Cent. Dig. § 504.

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