Bank of Forest v. Orgill Bros.
Mississippi Supreme Court
Bank of Forest v. Orgill Bros., 82 Miss. 81 (Miss. 1903)
34 So. 325; 1903 Miss. LEXIS 157
Terral
Bank of Forest v. Orgill Bros.
Opinion of the Court
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.
Reference
- Full Case Name
- Bank of Forest Et Al. v. Orgill Bros. & Co.
- Cited By
- 12 cases
- Status
- Published
- Syllabus
- Corporations. Promoters. Contracts. When corporation not Viable. A corporation is not liable on contracts made by its promoters unless it adopts the same or receives their benefits.