Dyer

Plaintiff instituted this action against defendants as copartners, seeking to recover damages on account of certain alleged fraudulent misrepresentations made by defendants in the sale of corporate stock. The plaintiff and respondent has filed no brief, but on account of the necessity of disposing of the case on the insufficiency of the evidence, we have nevertheless given careful consideration to the entire transcript on appeal.

The salient facts are that the Mission Beach Amusement Corporation was incorporated in October, 1925. Thereafter, on application, the commissioner of corporations of California issued a permit to said corporation to sell its preferred stock to the public at its par value of $10 per share. Thereupon R. E. Hicks was appointed fiscal agent to sell said stock. Said fiscal agent did then contract with defendants as his agents and brokers to sell said stock to the public.

On January 25, 1926, defendants sold to plaintiff 250 shares of said stock for $2,500 and on March 5, 1926, defendants sold plaintiff 500 shares of said stock for $5,000, which stock was duly delivered to plaintiff and for which she paid the total sum of $7,500. The corporation was formed to…