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Tion

sale, rule and am

TION.

Lord Mansfield held that the employment of a single puffer was a fraud; Cowp. 395; this rule was afterwards relaxed, in equity only, so as to allow a single bidder; 12 Ves. 477. The rule was stated in L. R. 1 Ch. 10, to be, that a single puffer will vitiate a sale in law, but may be allowed in equity; though either at law or in equity, such bidding is permissible upon notice at the sale. By 30 and 31 Viet c. 48, the rule in equity was de clared to be the same as at law. See L. R. Eq. 60. Lord Mansfield's opinion was fol lowed in Appeal of Pennock, 14 Pa. 446, 53 Am. Dec. 561, per Gibson, C. J., overruling Steele v. FlImaker, 11 S. & R. (Pa.) 86; Towle v. Leavitt, 23 N. H. 360, 55 Am. Dec. 195; Baham v. Bach, 13 Va. 287, 33 Am. Dec. 561. In New Jersey it seems that if there is a bona fide bid next before that of the buyer, the bidding of puffers will not avoid the sale (so held also in Veazie v. Williams, 3 Story 611, Fed. Cas. No. 16,907); but it is intimated that it would be a better rule to for bid puffing ; National Bank of the Metropolis v. Sprague, 20 N. J. Eq. 159. Kent favors

Lord Mansfield's rule; 2 Kent *540. The employment of a puffer to enhance the price of property sold is a fraud ; Fisher v. Her sey, 17 Hun (N. Y.) 373. So held in Caldwell v. U. S. 8 How. (U. S.) 378, 12 L. Ed. 1115. Exceptions to the rule may occur when it does not appear that the buyer paid more than the value of the property or than 'he had determined to bid; Tomlinson v. Savage, 41 N. C. 430. A purchaser thus misled must restore the property as soon as he dis covers the fraud; Backenstoss v. Stahler's Adm'rs, 33 Pa. 251, 75 Am. Dec. 592 ; Veazie v. Williams, 3 Story 611, 631, Fed. Cas. No. 16,907. In Phippen v. Stickney, 3 Metc. (Mass.) 384, the validity of the sale is held to depend upon the animus with which the puffing is carried on. Where a sale is ad vertised to be "without reserve" or "posi tive," the secret employment of by-bidders renders the sale voidable by the buyer ; Cur tis v. Aspinwall, 114 Mass. 187, 19 Am. Rep. 332.