Timmer v. Clover Foundry Co.

The stock subscription agreement, upon which this action was brought, was for 100 shares of no par value common stock in Petroleum Marketers Equipment Corporation, now bankrupt. Defendant, the subscriber, agreed “to pay for the same in cash, on or before Aug. 28, 1933.” Following the signature of defendant by C. M. Clover, appears the' following:

“Witness: 500.00 Cash.

500.00 Mdse.”

Defendant paid $500 and denied liability for the balance, claiming it was induced to sign the subscription agreement by fraudulent representations and that it rescinded the agreement after discovering the fraud. It…