Greenberg

Plaintiff bought two lots from defendant corporation Du Bain Realty Corp., through Stoll and Boyd, salesmen for the realty corporation, agent for Ambassador Park Syndicate, in 1923. According to his complaint, he did and performed everything of him required to be done under and in pursuance of the terms of the agreement and contract for the purchase of the lots, and was not in default. He gave notice of rescission in February, 1932, and brought this action upon refusal of the defendants to restore his money. The trial court sustained a demurrer to the third amended complaint, and the District Court of Appeal affirmed the judgment entered thereon for defendants. It held that plaintiff’s claim of fraudulent representations of the agent is not tenable in view of a stipulation in the contract entered into limiting the agent’s authority, under the doctrine of Gridley v. Tilson, 202 Cal. 748 [ 262 Pac. 322 ] ; and also that plaintiff’s right to rescind was barred by laches and by the statute of limitations.

The case was taken over by this court in order to eliminate the language dealing with the Gridley v. Tilson rule, which is now limited, in view of the decisions of this court in…