During an intensive stock-selling campaign of the defendant power company, the stock salesman represented to the complainant that the corporation would repurchase at par upon demand any of the stock then offered. Relying upon this representation the complainant purchased thirty shares of stock for $3,000, the company apparently receiving his money and issuing the stock with knowledge of the false representations; when he later wished the company to repurchase the stock, it refused. On suit for (1) rescission and recovery of sum paid, or (2) reformation and specific performance, the company claimed among other things that the agreement made by its agent was unauthorized and therefore not binding. Held, that while complainant was entitled to recover on grounds of estoppel and sufficient authorization of the agent, the act of the corporation in accepting complainant's money with knowledge of the representations did not amount to a ratification of the representation. Downs v. Jersey Central Power & Light Co., 115 N. J. Eq. 348, 174 Atl. 887 (1934).
AGENCY - FALSE REPRESENTATIONS BY AGENT - RATIFICATION,
Mich. L. Rev.
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