Bates v. Keith Iron Co.
Bates v. Keith Iron Co.
Opinion of the Court
This case is submitted on an agreed statement of facts ; and the questions are, in the first place, whether Levi Keith, jr., the defendants’ agent, had authority to bind them by the note in suit; and, in the second place, whether, if he had no such authority, he had not been held out to the public, by the defendants, as being so authorized.
As to the latter question, it is agreed that, before the giving of said note, the said Keith had signed other notes to other individuals in the same manner, and for similar services as those for which this note was given ; and that some of them had been
The records of the corporation show, that by one of its by-laws the agent was authorized and directed “ to manage the affairs of the corporation, committed to his care, according to the best of his ability, and at all times exercise the powers committed to him according to his discretion ; and promptly to collect all assessments and other sums that shall become due to the corporation, and to disburse them ; according to the order of the board of directors; saving that the board of directors shall be a board of control over him, and whenever they shall give him special directions, he shall be bound strictly to adhere to them.” But ar the directors never did interpose to control the proceedings ol the agent, this qualification of his authority does not apply to the present case. On the contrary, if the assent of the directors were necessary to authorize the agent to contract for the corporation, their assent might fairly be presumed. We do not, however, consider their assent necessary to legalize the acts of the agent. It is sufficient that they interposed no objections to his proceedings. And unquestionably he was fully authorized to employ workmen to carry on the business of the concern, and to pay them with the funds of the corporation ; or, not being in funds, he had authority to give the notes of the corporation in payment. Odiorne v. Maxcy, 13 Mass. 178, and 15 Mass. 39. White v. Westport Cotton Manuf. Co. 1 Pick. 220
Judgment for the plaintiff.
Reference
- Full Case Name
- William H. Bates v. The Keith Iron Company
- Status
- Published