Eichbaum v. Sample

Citations

• 213 Pa. 216
• 62 A. 837
• 1906 Pa. LEXIS 450

Syllabus

<p>Contract — Pledge—Conditional sale — Stock—Equity.</p> <p>■ An owner of bank stock obtained a sum of money from another person, and assigned to such person the stock upon an agreement that as a consideration for the transfer the stock should be transferred back to the owner upon payment of the money advanced with right in the owner to redeem the said'stock at any time he could raise moneys sufficient to pay the loan. Held, that the owner had a right to redeem the stock upon proper tender, whether the transaction should be considered as a pledge of the stock for a debt, or as a sale with an option in the vendor to repurchase it on specified terms.</p> <p>In such a case the fact that the time for redeeming the stock was left indefinite, is immaterial, inasmuch as the person advancing the money, whether pledgee or vendee, could bring the transaction to a close by a notice to pay or redeem in a reasonable time, or be barred.</p> <p>Where an owner of stock pledges it, or sells it with an option to repurchase on specified terms, he may maintain a bill in equity for a retransfer of the gtock- to himself, where it appears that the stock was not purchasable in the market, that it had no quoted or ascertainable market value, and that plaintiff held it as an investment, having a peculiar value to him greater than the market price at the time of transfer.</p>