McGowan Co. v. Carlson

Citations

• 79 Wash. 92
• 139 P. 869
• 1914 Wash. LEXIS 1156

Syllabus

<p>Corporations — Sale op Stock — Praub—Matters op Pact. Misrepresentations by the owner of corporate stock as to the value of the corporate assets are as to matters of fact and not as to matters of opinion.</p> <p>Same — Misrepresentations—Question por Jury. The fraud of the defendant in misrepresenting the value of corporate stock sold is a question for the jury, where there was evidence tending to show that defendant represented that its stock of goods on hand was of the reasonable value of $8,000, that it had good accounts to the extent of $4,000, and debits amounting to $2,000 which would be offset by leaving $2,000 in earnings that had not been withdrawn, and there was evidence that at the time the company was insolvent.</p> <p>Bills and Notes — Bona Fide Purchaser — Consideration. Where, on a sale of corporate stock, the vendor, as part of the purchase price, took a note payable to a corporation of which he was president and manager, the corporation is not a holder in due course, but takes the note subject to any infirmities on account of fraud' in the sale, where there was no evidence of any consideration on account of the note moving from the corporation.</p> <p>Appeal — Preservation of Grounds — Exceptions to Instructions. Error cannot be predicated on instructions, where it nowhere appears that the written exceptions thereto which were filed were ever called to the attention of the trial court.</p>