Goodwyn v. Folds

1. The petition in this case is construed as an action for damages, under section 4135 of the Civil Code (1910), for the breach of an alleged implied warranty in the sale of corporate stocks, upon the theory that the stock had a latent defect undisclosed, and was not merchantable and reasonably suited to the uses intended, as an investment, by reason of the existing insolvency of the corporation, rendering it worthless. Held: In such a sale there is no implied warranty of the-particular nature relied on, the same being, “from the *205nature of the transaction, excepted.” The purchaser does not…