Allison v. Wood

Citations

• 147 Pa. 197
• 23 A. 559
• 1892 Pa. LEXIS 812

Syllabus

<p>Suretyship — Consideration.</p> <p>Where the promoter of a railroad induces another to take stock in the company, by promising that the railroad shall be finished by a certain date, or in default thereof that the subscription shall be returned by the company, and if not by the company by the promoter himself, the consideration for the promise is the subscription by the promisee to the stock of the company.</p> <p>Subscription to stock — Promise by promoter to refund subscription.</p> <p>A letter from the defendant to the plaintiff was as follows: “In consideration of your subscription of $5,000 to the stock of the proposed Philadelphia and Sea Shore Railway Company, I agree that it is understood that the said road shall be completed to Cape May by the 1st. of Oct., 1890, and in default thereof, I agree that the money paid by you on said subscription shall be returned to you by the said company, or in default thereof I shall do it myself, at that time.” Held, that this was a contract of suretyship based upon a sufficient consideration.</p>