Gaisser v. John Hansen

Citations

• 16 Ohio N.P. (n.s.) 577

Syllabus

<p>Action for Rescission of Contract — Representations as to the Value of Corporate Stock Not a Warranty, But Mere Opinion, When — Such Representations Not Raise Though Stock was Worthless, When— Impossibility of Making Defendant Good.</p> <p>1. In an exchange of corporate stock for real estate, the representation by the owner of the stock that “it was good,” or was “as good as gold,” does not constitute a warranty of the value of the stock, but is a mere expression of opinion.</p> <p>2. The failure of a bank three weeks after such a representation has been made by a holder of its stock, does not make the representation false in law, where it appears that the bank had declared a dividend just before the representation was made, and its stock was being quoted at $210 in the market, and the insolvent condition of the bank was known only to its officers.</p> <p>3. But even were the representation false, it could not be made the basis for the rescission of a completely executed contract; and this is especially true where it would be impossible to make the defendant whole by returning to him stock which is at this time worthless but which at the time the exchange was made was worth more than $200 per share in the market.</p>