Chicago Building Society v. Crowell

Citations

• 65 Ill. 453

Syllabus

<p>1. Corporation, private—power to contract for insurance. Under the act of 1869, authorizing the formation of incorporated companies, for the accumulation of a fund with which to purchase real estate in large tracts, paying off incumbrances thereon, and the sub-division of the same into lots suitable for homesteads, and the distribution of such lots among the shareholders, or to aid the shareholders in acquiring real estate, making improvements thereon and removing incumbrances therefrom, a company was incorporated, who made a loan, taking a deed of trust to secure its payment, and providing therein that the borrower should insure the buildings. The secretary of the company insured for the first year, charging the premium to the horrower, and insisted upon the right to insure for the next year, to which the horrower at first objected, but finally assented upon the secretary agreeing to make the insurance. The latter failed to do so, the buildings were destroyed by fire, when the borrower sued the company for a failure to insure. The company objected that it had no authority to make such a contract: Held, that, as the company was authorized to make the loan and provide for the security of the same, it followed as an incident that it had the right to provide for insuring property taken in security, and that an action would lie for a breach of the agreement to insure.</p> <p>3. While it is true that public policy requires that corporations should be confined strictly within the limits of their charters, and not be allowed to exercise powers beyond those expressly conferred, that would be hurtful to the public interest, yet where they have exercised powers incidental to those conferred, and in furtherance of the general objects of the corporation, although the subject of the contract may not be within any express right conferred, they will be estopped from denying that they had authority to make such contracts.</p> <p>3. Same—power of secretary presumed from, circumst