Trustees of the Antipœda Baptist Church v. Mulford

8 N.J.L. 224
CourtSupreme Court of New Jersey
DecidedSeptember 15, 1825
StatusPublished
Cited by2 cases

This text of 8 N.J.L. 224 (Trustees of the Antipœda Baptist Church v. Mulford) is published on Counsel Stack Legal Research, covering Supreme Court of New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Trustees of the Antipœda Baptist Church v. Mulford, 8 N.J.L. 224 (N.J. 1825).

Opinion

The following opinions were delivered,

Ewing, C. J.

This cause comes before us on a writ of error to the Inferior Court of Common Pleas of the county of Salem. The record returned contains a declaration with several counts in assumpsit by John M, against the plaintiffs in error, for work and labor, journeys and attendance, goods, wares and merchandize sold and delivered, and for meat,, drink, lodging and other necessaries, with a general demurrer, and joinder and a judgment in favor of Mulford the plaintiff below. °

The plaintiffs in error insist that this judgment is erroneous and should be reversed on two grounds.

1. That an action of assumpsit cannot be maintained against them, in as much as no contract can be made by an aggregate corporation otherwise than an express contract under their common seal.

[225]*225And it is necessary they should maintain this proposition in its full and broad extent to overthrow the judgment, for the question below arose on a demurrer to the declaration, and therefore if the corporation may be liable on any contract, or by any mode of proof which might be exhibited, within the limit of the declaration- the judgment must be sustained. And whether Mulford intended to claim on an implied or express contract or by what mode of proof he proposed to evince the undertaking of the corporation, we are not permitted to enquire.

The doctrine that a corporation can act only by its common seal, and can enter into, or be bound by, no contract without that solemnity, claims to stand on grounds both ancient and venerable; cases in the year books of the 4th JEdw. and 6th, 7th and 8th Henrys. But an examination of the subject in those cases will afford no great reason to admire the accordance and unanimity of the judges, the solidity of their reasons, or the sagacity of some of the distinctions they were led to recognize or establish. In general, it is said a corporation cannot do any acts of importance without deed, but they may employ one in ordinary services, as a butler, cook, or the like, or to make a distress on their behalf. They may speak in whispers, it seems, but not more audibly. An act in pais, it is said, they may not do without their common seal, yet they may do an act upon record, for they are estopped by the record to say it is not their act. They are allowed in such cases then, to speak and be heard in some other mode than by the common seal. Even the seal itself, by which alone it is sometimes said they are to speak and act, affords very equivocal evidence of common assent. For it may, defacto I mean, not de jure, be placed to an instrument by one of the members as perfectly as by the universal consent of the whole body. One, as well as the united force of all, may thus make it speak; and it is said that when the common seal appears to be affixed to a deed it is no‘t necessary that the [226]*226party producing the deed should prove by witnesses the fact of its having been regularly'fixed, or that the major part of the corporation agreed; but that if it be alleged to have been fixed by the hand of a stranger that shall be proved by the party who alleges it, Skinner, 2.

It is not my intention however to, to call in question this ancient doctrine, or its applicability, to the corporations of the times when it was adopted; but to ascertain the principle on which it rests and to examine how far it ought to govern at the present time and in the case before us. That an aggregate corporation acts and speaks by its common seal is rather figuratively than literally true. There must be acting and speaking, and the most efficacious acting and speaking before the use of the seal. The real effective words and deeds are those of the component members. The fixing of the seal is not, in itself, the assent of the body ; the real assent must necessarily precede the fixing of the seal. The corporation is indeed an artificial, ideal, invisible person, and as such can neither think or act, but it is composed of divers actual members whose- united voices form the voice of the corporation, and who alone, in fact and truth] think and act. The seal then, is not the act of the corporation, but the evidence of the act; is not the voice -of the corporation, but the evidence that it has spoken. The fixing of the seal is a mode in which the invisible body, to use the language of Blackstone, (3 Bl. Com. 475) “ manifests its intentions.” The use of ,the seal is a mode prescribed by the common law whereby the will of the corporation or the united will of the parts may be declared, and by which the acts of the corporation may be exhibited. If then in the creation of ,modern corporations, and especially, if in the act of the Legislature under which the plaintiffs in error became incorporated, it shall be found that another mode of declaring the will of the body and evincing its corporate acts, is provided, the presence of a seal will no longer be found necessary to the existence or evidence of a contract. In the [227]*227statute to which I have referred, Rev. Laws, 475, it is enacted, in the 6th section, that such corporations may elect annually or oftener if necessary or expedient, one of their own members to be their president who shall keep the minutes and enter the orders, acts and proceedings of the corporation in a book to be kept for that purpose : and in the 9th section, that the proceedings, orders and acts of a majority of all the members of the said corporation, but not of a less number, shall be valid and effectual. In these sections then, is provided a mode whereby this corporation, these plaintiffs, may act, and what may be the evidence of suóh act ? An act of this corporation may be as fully and legally manifested by the entry in the book, as that of an ancient corporation by its common seal. This corporation may bind itself as fully and legally by an entry on this book, as a common law corporation by its seal. Hence an entry in this book would, against the corporation, be good evidence of a contract, and it necessarily results that the contracts of an agent, appointed in the same way for the transaction of business within the legitimate objects of their incorporation, would bo coligatory on them. It will be readily seen also that on the same basis with the aid of the usual legal principles an implied promise may be sustained. In the case of FLeckner v. The Bank of the United States, 8 Wheaton, 357, Justice Story delivering the opinion of the court says, Whatever may be the original correctness of this doctrine [that a corporation can only act through the instrumentality of its common seal] as applied to corporations existing by the common law, in respect to which it has certainly been broken in upon in modern times, it has no application to corporations created by statute whose charters contemplate the business of the corporation to be transacted exclusively by a special board of directors. And the acts of such body or board evidenced by a written vote, are as completely binding upon the corporation and as complete authority to their agents as the most solemn acts done under the corporate seal.”

[228]*228The decisions of the American Courts on this subject are marked with great and commendable uniformity; and the liability of corporations upon contracts not under seal, and made by ‘themselves or their agents, and also on implied contracts is the settled law of Massachusetts, Heyden and another v. The Middlesex Turnpike Corporation, 10 Mass. Rep. 397; White v.

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Bluebook (online)
8 N.J.L. 224, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trustees-of-the-antipda-baptist-church-v-mulford-nj-1825.