ROUSE V. UNITED STATES
215 F.2d 872 (D.C. Cir. 1954)
NATURE OF THE CASE: This was an action to recover damages for a breach of contract. Rouse
(D) appealed a summary judgment in favor of United States (P).
FACTS: Associated installed a heating plant for Winston. Winston paid with a promissory
note guaranteed by the FHA (P) for $1,008.37, payable in monthly installments of $28.01. The
house was sold to Rouse (D) who agreed to assume the payments on the heating plant. Nothing
was said about the note. Winston defaulted on the note and the Government (P) paid the bank
and then sued D for payment. P was a third party beneficiary of the D-Winston contract. D
defended; Winston fraudulently misrepresented the condition of the heating plant and P's
assignor did not install the heater properly. The court struck these defenses and issued
summary judgment for P. D appealed.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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