CORPORATIONS - RESCISSION OF CONTRACT PROCURED THROUGH FRAUD

Authors

Abstract

P purchased shares of stock in S Company through the fraud and misrepresentation of his agents in collusion with the agents of the S Company. Upon discovery of the fraud, P tendered back a number of shares equal to the number received by himself and his innocent associates. In the meantime, P had resold part of the shares at a higher price. Held, P must also tender the profit resulting from the resale and subsequent purchase of equivalent shares in a fallen market, together with any dividends paid on stock and interest from date of payment. Marr v. Tumulty, 256 N. Y. 15, 175 N.E. 356 (1931).

Recommended Citation

CORPORATIONS - RESCISSION OF CONTRACT PROCURED THROUGH FRAUD, 30 Mich. L. Rev. 306 (1931).
Available at: https://repository.law.umich.edu/mlr/vol30/iss2/22