Lowery v. Mutual Loan Soc., Inc.
Supreme Court of Alabama
Appeal from Circuit Court, Jefferson County ; E. O. Crow, Judge. Action in assumpsit by the Mutual Loan Society, Incorporated, against J. T. Lowery. Judgment for ‘plaintiff and defendant appeals. Transferred from Court of Appeals under Acts 1911, p. 449, § 6. The note, the basis of the suit, was executed by defendant in payment of his subscription for 50 shares of the capital stock of the plaintiff corporation, to be issued when the note was paid.
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Appeal from Circuit Court, Jefferson County ; E. O. Crow, Judge. Action in assumpsit by the Mutual Loan Society, Incorporated, against J. T. Lowery. Judgment for ‘plaintiff and defendant appeals. Transferred from Court of Appeals under Acts 1911, p. 449, § 6. The note, the basis of the suit, was executed by defendant in payment of his subscription for 50 shares of the capital stock of the plaintiff corporation, to be issued when the note was paid. Pleas 3 and 4 aver that the note was void, and of no effect, because defendant was induced to subscribe for the stock toy the false representation…
1Opinion of the CourtSomerville, J.
[1, 2] It is elementary law that one who has been induced to enter into a contract by the material misrepresentations of the other party may, if he acts with reasonable promptness npon the discovery of the fraud, rescind the contract in toto; and, if he has parted with any consideration, he may recover it by suit, or he may stand upon the contract, and recover for damages resulting from the fraud.
[3-5] Or, if sued for the consideration promised, he may defeat a recovery by pleading and showing an effective rescission; or, without rescinding, he may defeat or mitigate the recovery, by pleading…
2Cases cited2 opinions
- Bomar v. RosserSupreme Court of Alabama · 1901
- Moore, Kirkland & Co. v. Westinghouse Electric & Manufacturing Co.Supreme Court of Alabama · 1895
3Cited by11 opinions
- Southern Building & Loan Ass'n v. BryantSupreme Court of Alabama · 1932
- B. F. Goodrich Co. v. HughesSupreme Court of Alabama · 1940
- Attalla Oil & Fertilizer Co. v. GoddardSupreme Court of Alabama · 1922
- B. v. Emery & Co. v. WilkinsonCourt of Appeals for the Tenth Circuit · 1934
- Brabner v. CantonSupreme Court of Alabama · 1992
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