Stockmen's Guaranty Loan Co. v. Sanchez

Citations

• 26 N.M. 499
• 194 P. 603

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Sections 939 and 940, Code 1915, interpreted and held not to prohibit a corporation from taking a promissory note upon a subscription contract for its capital stock, and that such note is valid and binding upon the maker. P. 503</p> <p>2. Evidence examined, and held not to support an allegation of fraudulent representations inducing a stock subscription. P. 505</p> <p>3. The payment of the purchase price, in pursuance of the terms of a subscription contract for corporate stock and the receipt of benefits from the corporation, after the discovery of alleged fraudulent representations inducing the subscription contract, establishes an affirmance of the contract and destroys the fight to rescission. P. 505</p> <p>4. A person who executed a subscription contract for stock in a corporation when he is under influence of liquor, but whosubsequently, when he is sober, does acts which clearly recognize the contract as valid, and shows an intention to be bound by it, affirms the contract, and thereby des'troys his right to rescind on account of drunkenness. P. 506</p>