Boehme v. Broadway Theater Co.

Citations

• 91 Wash. 104
• 157 P. 218
• 1916 Wash. LEXIS 1010

Syllabus

<p>Corporation's — Sale op Stock — Rescission—Fraud—Evidence— Sufficiency. The rescission of a sale of corporate stock of a moving picture concern for fraud is warranted, where the preponderance of the evidence supported the claim of the plaintiff, a young man 24 years of age without business experience, that the defendants, officers and principal stockholders of the company, falsely represented that the company was making money above expenses and had for eight weeks, when in fact it had always lost money, that its lease called for monthly rentals of $150 to $200 a month, when in fact it called for $250 per month, and that plaintiff relied on the representations and was induced thereby to purchase stock.</p> <p>Same — Sale of Stock — Fraud — Reliance Upon — Matters of Fact. A sale of stock in a corporation may be rescinded for false representations as to its financial condition, the volume of its business and the amount of its income and expenses being matters of fact peculiarly within the knowledge of the officers of the company making the same, even though there was an opportunity to investigate.</p>