CLEAN HANDS DOCTRINE

Case Credit Corp. (Case) finances the sale of farm equipment to farmers. Day bought farm equipment financed by Case, yet Day never actually signed the sales contract. Instead, an employee of Case forged Day's signature on the sales contract with higher prices in an effort to pocket the difference for himself. Case was aware of the forgery but did not make any effort to stop the employee or inform Day. When Day could not pay the loans back, Case filed suit to recover the farm equipment or compel payment.

CASE QUESTIONS

1. If the court applies the clean hands doctrine, will Case be able to recover the farm equipment because Day is unable to make the payments? Why or why not?

2. Are Case's hands clean? Why or why not?