Gregory v. Consolidated Utilities, Inc.

The appellant, H. M. Gregory, owned or controlled all of the shares of the capital stock of the Gregory Bns Lines, a Tennessee corporation. The bus line at the time of the contract between Gregory and others owed debts amounting approximately to $150,000. On May 1, 1928, O. P. Garnett asked Gregory if he would sell all the stock of the Gregory Bus Lines and at what price. Gregory agreed to sell for $400,000, and thereafter wrote the following letter:

“Memphis, Tennessee, May 8, 1928.

“Mr. O. P. Garnett, Memphis, Tennessee.

“Dear Sir:

“Confirming our conversation of today:

“I will undertake to…