Bonsall v. Platt

Citations

• 153 F. 126
• 82 C.C.A. 260
• 1907 U.S. App. LEXIS 4386

Syllabus

<p>Corporations — Contract for Services — Formation ox- Corporation — Effect.</p> <p>Defendant employed plaintiff to assist him in building up a business, under a parol contract that plaintiff was to draw his necessary expenses, and that the balance of his compensation should be determined at a future time, when plaintiff had proved his worth in the business, and that plaintiff should consider that he was “in with’’ defendant in the business, and that it was half his own. After the business commenced to succe'ed, defendant formed a corporation, in order to better conduct the same, and became the owner of all the stock; plaintiff being elected president, treasurer, and one of the directors, which office he continued to hold until he resigned, in 1903. No action was ever taken by the corporation with reference to the payment of salaries, and no salary was ever fixed during plaintiff’s employment. Held, that plaintiff’s services, rendered after the organization of the corporation, were rendered under the original contract, and that the organization of the corporation did not relieve defendant from liability therefor.</p>