Bank of Forest v. Orgill Bros.

Mississippi Supreme Court

Bank of Forest v. Orgill Bros.

34 So. 325, 82 Miss. 81, 1903 Miss. LEXIS 157

Mississippi Supreme Court·Decided March 1, 1903·Published·Cited by 12 cases

Opinion

Terral, L,

delivered the opinion of the court.

The judgment appealed from must be reversed as to the Bank of Forest. The contract of Huber, one of the promoters of the Bank of Forest, for the purchase of a' burglar-proof safe and a vault door from appellees, was before the incorporation of the Bank of Forest; and it is a rule of law that such contracts of promoters are not binding upon the corporation unless it receives the benefit thereof, or the contract is adopted by it. There has been no acceptance or adoption here. Morawetz on Corporations, sec. 548; Law of Promoters, etc., by Alger, c. 10, § 203.

Affirmed as to Huber; reversed as to the Bank of Forest.

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Terral, L,

delivered the opinion of the court.

The judgment appealed from must be reversed as to the Bank of Forest. The contract of Huber, one of the promoters of the Bank of Forest, for the purchase of a' burglar-proof safe and a vault door from appellees, was before the incorporation of the Bank of Forest; and it is a rule of law that such contracts of promoters are not binding upon the corporation unless it receives the benefit thereof, or the contract is adopted by it. There has been no acceptance or adoption here. Morawetz on Corporations, sec. 548; Law of Promoters, etc., by Alger, c. 10, § 203.

Affirmed as to Huber; reversed as to the Bank of Forest.

Bank of Forest v. Orgill Bros., 34 So. 325, 82 Miss. 81, 1903 Miss. LEXIS 157 (Mich. 1903).

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Opinion

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