Gaffny v. Michaels

It was alleged in the complaint filed by respondent, and admitted by the answer thereto, that on or about the second day of January, 1921, the appellant purchased from respondent and the latter’s assignor certain capital stock of the Santa Monica Soft Water Company, a corporation, and that appellant then agreed to pay therefor, in addition to the stipulated sale value, such amount of profit as an audit of the company’s accounts might show to have been earned between August 28, 1920, and December 31, 1920: The plaintiff alleged that an audit was made by competent accountants, and that the…