Peterson

This is an action for the rescission and cancellation of an agreement to purchase an interest in a business and to recover the purchase price paid. The de fendants, as partners, were conducting a business for preserving and canning fruits under a “secret process” at a certain address in Santa Ana. Upon the solicitation of one of the defendants, the plaintiff agreed to, and did, put $3,000 cash into the business in return for a one-fourth' interest therein. He was taken to this defendant’s attorney, who drew an agreement dated August 3, 1928, which recited that in consideration of $3,000 there was assigned to the plaintiff “an undivided one-fourth interest in said business, fixtures and equipment”. This agreement further provided that in the event said business should later be incorporated, the plaintiff should have one-fourth of the stock issued. Early in December, 1928, the plaintiff discovered that certain representations made to him by the defendants were false and untrue, whereupon he served notice of rescission and tendered back what he had received. In the action which followed, the court found, among other things, that some ten false representations as to material facts had…