Merchants Realty & Investment Co. v. Kelso

Action to recover on a subscription contract whereby the defendant agreed to take and pay for shares of stock of plaintiff corporation. The defendant claimed the right to rescind the contract upon the ground that the agents of the corporation in their negotiations with the defendant, which resulted in the contract, falsely and fraudulently represented to the defendant that the capital stock of the corporation was nonassessable; that the defendant signed the contract in reliance upon said statements which he believed to be true and without which he would not have entered into such contract. At…