Reid v. Caldwell

Simmons, C. 3.

Where A, B, and C, for a valuable consideration, enter into a written contract with D, covenanting and agreeing therein to have a certain number of shares of stock in a certain corporation, which they control, issued to D upon his payment to them at a particular time of a certain amount of money as part payment of the price which he agrees to pay them for the stock; and it is further stipulated that D, after the stock is so issued to him, shall transfer it to A, B, and C, as collateral security for the other payments to be made; and D pays the first instalment and the stock is…