Question

Please explain the answer and which laws apply.
Thanks

Sayre learned that Adams, Boone, and Chase were planning to form a corporation for the purpose of manufacturing and marketing a line of novelties to wholesale outlets. Sayre had patented a self-locking gas tank cap but lacked the financial backing to market it profitably. He negotiated with Adams, Boone, and Chase, who agreed to purchase the patent rights for $5,000 in cash and 200 shares of $100 par value preferred stock in a corporation to be formed.

The corporation was formed and Sayre's stock issued to him, but the corporation has refused to make the cash payment. It has also refused to declare dividends, although the business has been very profitable because of Sayre's patent and has a substantial earned surplus with a large cash balance on hand. It is selling the remainder of the originally authorized issue of preferred shares, ignoring Sayre's demand to purchase a proportionate number of these shares. What are Sayre's rights, if any? Please explain.

Answer 1

Answer :-

Case rundown :   Sayre sold his gas tank top patent rights to A,B, and C, for money and offers in the organization. in the wake of getting the patent right the organization discounted to payout the money and discharged just the offer. The abundance request made by Sayre to buy shares was additionally dismissed.

Rupture of agreement : On the off chance that if any one or both the gatherings of the agreement neglects to finish the undertaking concurred and doled out through contract is named as break of agreement.

Support :- In the previously mentioned case , Sayre has sold his patent rights for the gas tank to the enterprise framed by A,B and C . As a thought the partnership Has denied to pay money yet issued the offers without beginning isolated . hence, the ct of A,B and C is break of agreement and Sayre can make lawful move against the organization and its advertisers A,B and C