Hass

Plaintiff sued for damages for breach of contract. Defendant answered setting up fraud in the execution of the contract and filed a cross-complaint seeking $2,500 paid to plaintiff upon the execution of the contract. The cause was tried before a jury which returned a verdict against plaintiff on Ms complaint and awarded defendant $2,500 on his cross-complaint. Plaintiff appeals on a bill of exceptions.

The contract, which was in writing, undertook to appoint the defendant the sole and exclusive distributor in San Francisco of all merchandise manufactured by plaintiff. It called upon the defendant to “purchase from the party of the first part (plaintiff) merchandise in the sum of five thousand ($5,000) dollars to be delivered to party of the second part when ordered by said party of the second part”. The contract was executed May 18, 1926, at which time defendant paid plaintiff $2,500, agreeing to pay the balance of the $5,000 on November 1, 1926.

As an inducement to the execution of the contract plaintiff promised defendant that he would come to San Francisco and help him learn the business and would advise him as to the merchandise he should purchase and keep on hand. He also…