Defendant, who owned all the common stock of a bank, gave an oral option to sell it at a fixed price to plaintiff. Plaintiff was to investigate the bank's books, assets, and liabilities in order to determine the true value of the stock. If the true value did not equal the agreed price, the parties were to meet and set the amount of the diminution. In the event of disagreement, a third party was to be called in. Plaintiff expended considerable sums for investigation before defendant renounced the option and prevented further investigation. In an appeal from an interlocutory order restraining defendant, held, because specific performance cannot be given of a contract to set the price by arbitration, the lower court abused its discretion and the order must be dissolved. Simmons Co. v. Crew, (C. C. A. 4th, 1936) 84 F. (2d) 82.
Michigan Law Review,
SPECIFIC PERFORMANCE - ORAL OPTION TO BUY STOCK - EFFECT OF PROVISION TO FIX PRICE BY ARBITRATION,
Mich. L. Rev.
Available at: https://repository.law.umich.edu/mlr/vol35/iss5/20