Section 31 Bona Fide Purchaser

• Library: Remedies 2006

The remedy of rescission or cancellation will not be granted against a bona fide purchaser who purchases for value and who does not have notice of the grounds on which the claim of rescission or cancellation is made. Murphy v. Butler County, 180 S.W.2d 732, 735 (Mo. 1944); Morris v. Hanssen, 78 S.W.2d 87, 95 (Mo. 1934); In re Idella M. Fee Revocable Trust, 142 S.W.3d 837, 841 (Mo. App. S.D. 2004). The burden of proving that it is a bona fide purchase without notice is on the third party seeking the intervening rights. Landshire Food Serv., Inc. v. Coghill, 709 S.W.2d 509, 512 (Mo. App. E.D. 1986).

The term bona fide purchaser is not necessarily limited to a purchaser. If a third party acquires an equitable interest, for value and without notice of the ground for rescission...