Mahan v. Wood

Citations

• 44 Cal. 462

Syllabus

<p>Note bob Stock oe Coepoeation not yet Fobmbd.—A promissory note executed for the purchase of a certain number of shares of a homestead association about to be formed, under a name and with a number of shares agreed upon when the note is given, does not fail for want of consideration, because the association when formed has a name or number of shares of stock different from that agreed on, provided the land is the same and the lots are of the same value as the promissor had reason to expect.</p> <p>Idem.—The giver of the note in such case is, however, at liberty to stand on the terms of his contract, and if it is understood that the shares of stock he is to receive will not cost, in the aggregate, more than a certain sum per . share, he is at liberty to refuse the stock if it will cost more than that sum, and the note is void for want of consideration.</p>