Fourchy v. Ellis

Citations

• 140 F. 149
• 1905 U.S. App. LEXIS 4776

Syllabus

<p>1. Equity Jurisdiction — Agreement for Sale of Interest in Business— Enforcement of Rights Under.</p> <p>Equity has jurisdiction of a suit to enforce rights of the complainant who paid sums of money to defendant for use in his business under an alleged agreement that complainant was to have an interest in such business and its profits, which agreement was never definitely completed.</p> <p>2. Contracts — Unsigned Writing.</p> <p>A draft of a contract, prepared and assented to by the parties as it was made, but never signed as contemplated, is not valid as a parol contract, since it was not intended to be operative until signed.</p> <p>[Ed. Note. — For cases in point, see vol. 11, Cent Dig. Contracts, § 171.1</p> <p>3. Same — Agreement for Sale of Interest in Business — Construction.</p> <p>Complainant advanced money to defendant for use in his business, under an agreement that it should apply toward the purchase of an interest in defendant’s property and business, to be carried out by the organization of a corporation and the issuance of stock to complainant, subject to certain contingencies, in which case the money was to be repaid. The property was never conveyed to the corporation, which was subsequently abandoned. Held, that the agreement did not operate to transfer an interest in the property, nor was it sufficient to create a partnership; but that, under the contingent proviso, complainant was entitled to recover the money, with interest.</p>