Gay v. Dare

Citations

• 103 Cal. 454
• 37 P. 466
• 1894 Cal. LEXIS 801

Syllabus

<p>Corporations—Contract For Purchase oe Stock—Insolvency oe National Bank—Payment oe Assessment.—Where a subscriber to the stock of a national bank, which afterwards became insolvent, had agreed with other stockholders that they would take the stock from him at the end of a year at the price paid for it, at his option, for the amount of his investment, and pay him ten per cent interest on the investment, they are bound to take the stock at the time agreed, upon notice of the option; and if they neglect and refuse so to do, they become liable not only for the amount of principal and interest as agreed, but also for the amount of an assessment levied by the controller of currency of the United States upon the stock of the insolvent bank to pay its debts, which the subscriber was compelled to pay, and did pay, to the receiver of the bank.</p> <p>Id.—Purchase of Stock—Assessments After Breach of Contract.— One who contracts to purchase stock on a given date must take it at the time indicated in his contract cwm onere, and if he fails to do so he is liable not only for the purchase price and interest, but also for all assessments levied upon the stock after his breach of the contract, which his vendor is compelled to pay thereon.</p> <p>Id.—Option to Return Purchased Property—Rescission of Contract. — Where a purchaser of chattels pays the price, and stipulates that if he so desires he may return the property and receive back the price paid upon the exercise of the option, a rescission of the contract takes place, and the title at once vests in the original vendor.</p> <p>Id.—Tender of Stock—Refusal of Payment—Trust—Reimbursement of Expenses.—Upon a tender of stock purchased, where the purchaser has the option to return the stock and receive reimbursement of the price with interest from the vendors, and they have refused to accept the stock and pay the money agreed, the purchaser holds the stock as trustee for the vendors, and as suph trustee is entitled to reimbursemen