What is the test for voiding a purchase under the rule of disqualification?

MultiRegion, United States of America

The following excerpt is from Hermann v. Hall, 217 F. 947 (9th Cir. 1914):

It may also be stated, as a general rule, that in all cases of the nature of the one now under consideration the decision depends upon [217 F. 953.] the application to the particular facts of the rule of disqualification. In those cases where a conflict between duty and self-interest has been shown, the purchase has been held voidable, regardless of the manner in which or by whom the sale was made. Marquam v. Ross, 47 Or. 374, 405, 78 P. 698, 83 P. 852, 86 P. 1. In the present case no such conflict is made to appear. The defendant secured purchasers for the property, not, indeed, at the price at which he had been authorized to sell, but at a price in excess thereof. Upon the consummation of the sale his duty to his principals ceased. The sale was consummated, as we have shown, on the 17th of May, 1905, and nothing then stood in the way of his agreeing three months thereafter to purchase an interest in the property.

The judgment of the court below is affirmed.

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