Beltz v. Garrison

Citations

• 254 Pa. 145
• 98 A. 956
• 1916 Pa. LEXIS 697

Syllabus

<p>Corporations — Contracts—Contracts of directors — Binding effect on corporation not a party to the contract.</p> <p>Where persons about to become, directors and sole stockholders of a corporation agreed with a creditor who had expended money upon the corporate property that out of the net earnings of the corporation a proportion thereof was to be applied to the payment of the debt, the corporation though not a party, was bound by the agreement, and in a suit in equity by the creditor to compel the corporation to pay the amount called for by the contract, the lower court properly entered a decree for the plaintiff.</p>