Partridge v. Butler

Citations

• 113 Cal. 326
• 45 P. 678
• 1896 Cal. LEXIS 788

Syllabus

<p>Corporations—Liability op Stockholders—Pleading—Original Indebtedness—Account Stated—Reduction op Debt..—A complaint in an action to enforce the liability of a stockholder in a corporation, which shows that defendant was a stockholder therein, when the original indebtedness of the corporation to the plaintiff was created, is not rendered subject to demurrer, nor to a motion to strike out, because it also sets forth a subsequent account stated with the corporation for the purpose of showing that the original debt was reduced by agreement; and, in such case, the cause of action is upon the original indebtedness. and not upon the account stated, which served merely to establish a reduction of the indebtedness of the corporation and of its stockholder, the stockholder being at liberty to repudiate the reduction, if he saw lit, and also at full liberty to assail the original indebtedness.</p>