Holdom v. Ayer

Citations

• 110 Ill. 448

Syllabus

<p>1. Fraud and deceit—necessity of having relied on representations. A party defendant who has induced the plaintiff to subscribe and pay for stock in a corporation through false representations of the value of such stock, etc., is not liable in an action on the case for fraud and deceit, if it appears that the plaintiff did not rely upon the representations as charged in the declaration, but upon the guaranty of the defendant.</p> <p>2. Same—of the scienter. Where an agent of a mining company, by false representations as to the value of the shares of stock in such company, or as to the extent and condition of the property of the company, induces, another to subscribe for and purchase shares of stock from the company, the agent will not be liable to the purchaser in an action for fraud and deceit unless he knew his representations were false when he made them. The fraud and the scienter constitute the grounds of the action.</p>