Converse v. Schmidlapp

This action was brought for the rescission of a contract under which plaintiff paid $5,000 to the defendant for one-half of defendant’s interest in a corporation which supposedly had been formed with a $30,000 capitalization. The purpose of forming the corporation was to produce at least five plays in Boston on a stock company basis. The purpose of the plaintiff in purchasing an interest in this business venture was to provide himself with a chance to act in Boston and possibly in New York if the plays were later transferred there for a run.

After the contract was signed, the plaintiff went to…