Kelso

Action to recover on a subscription contract whereby the defendant agreed to take and pay for shares of stock of plaintiff corporation. The defendant claimed the right to rescind the contract upon the ground that the agents of the corporation in their negotiations with the defendant, which resulted in the contract, falsely and fraudulently represented to the defendant that the capital stock of the corporation was nonassessable; that the defendant signed the contract in reliance upon said statements which he believed to be true and without which he would not have entered into such contract. At the trial the court overruled plaintiff’s objections to the defendant’s offer of evidence proving that such representations were made by plaintiff’s agents. The facts were proved as alleged by the defendant and judgment was rendered in his favor, from which judgment the plaintiff appeals.

[1] It is conceded by appellant that the rule of law by which the decision of the trial court on the question at issue must be tested was determined adversely to appellant in the case of Browne v. San Gabriel River Rock Co., 22 Cal. App. 682 , [ 136 Pac. 542, 544 ]; which decision was rendered by this court…