Michigan Surety Co. v. Baker

On December 7, 1920, defendants signed a written application for and agreement to purchase 20 shares of stock in the Peninsular Casualty Insurance Company at the price of $125 per share, payable as follows:

“$25 cash and the balance as follows: $600 bonds 1875 note.

“Upon completion of payment, a stock certificate is to be issued to me, showing said stock to be fully paid and nonassessable. The-first payment hereon shall be liquidated damages should I fail to complete the payment as above mentioned.”

The note was made payable on or before one year after December 7, 1920. After the usual promise…