Building & Loan Ass'n v. Chamberlain

Citations

• 4 S.D. 271
• 56 N.W. 897
• 1893 S.D. LEXIS 74

Syllabus

<p>1. A party who has contracted with a corporation defacto as such, cannot he permitted after receiving the benefits of his contract, to allege any defects in the organization of such corporation affecting its capacity to enforce such contract; but all such objections, if valid, are available only on behalf of the sovereign power of the state.</p> <p>2. Stockholders who subscribe for stock, or assist in organizing' a corporation under a charter, and reap the benefits of the law, and thereby induce persons to credit the corporation, and do business with it on the faith of its being legally organized, will be estopped from alleging that the law under which the corporation is organized is unconstitutional, as a moans of avoiding any personal liability by reason of these transactions or contracts with such corporation.</p> <p>(Syllabus by the Court.</p>