In March 1857, Peugh (plaintiff) borrowed $2,000 from Davis (defendant), payable in two months. Peugh gave Davis a deed to his property, which was written as a sale of the property. The loan was repaid and the deed returned. In May, Peugh borrowed $1,500 from Davis under the same terms as before, but by January 1858, Peugh had not repaid the loan. In February, Peugh borrowed another $500 from Davis and gave Davis an instrument that recited that Peugh had previously sold the property to Davis. He also delivered a receipt for $2,000 purporting to be the full purchase price of the property. Peugh sued to redeem the property. The lower court found for Davis, and Peugh appealed.