Walter

(after stating the facts as above).

It is assigned as error that in answer to the question, what Was his understanding of the condition of the C. A. Goodyear Lumber Company at the time of entering into the contract of March 23, 1923, Lamont Rowlands was permitted to testify that his understanding was that the company was in a very serious condition, and that “the report of the president to the stockholders indicated that.” It is objected that the testimony was proof, not of the fact of financial difficulties, but only of Rowland’s state of mind. To this it is to be said that the state of mind of the witness had been brought in issue by the plaintiff’s contention that he had not acted in good faith in dealing with Henrietta Goodyear. The trial court ruled that the testimony was admissible, not as tending to show the financial condition of the corporation, but as going to the question of the good faith and the understanding of the witness when the contract was made and the source of the information on which he relied. Where the motive of a party in performing an act thus becomes a material issue or reflects light upon the same, he may testify concerning it, and his testimony is…