Daniel v. Glidden

Citations

• 38 Wash. 556
• 80 P. 811
• 1905 Wash. LEXIS 1207

Syllabus

<p>Fraud—Bills and Notes—False Representations as to Financial Responsibility—Investigation oe Truth. The payee of a note, who was induced to loan money by the fraud of officers, of a corporation, is not bound to investigate the truth or falsity of representations concerning the financial ability of the corporation, where it would involve the examination of a concern represented as doing a banking business, and of public records, and a large number of houses said to be building, since the means of knowledge are not open, and reasonably call for reliance on the representations.</p> <p>Bills and Notes—Officers of Corporation—Fraud—Individual Liability. Where a loan is secured by false representations as to the responsibility of a corporation, a note therefor, signed in a representative capacity by the officers who procured the loan and received the money, is their individual obligation.</p> <p>Bills and Notes'—Corporations—Signature of Officers—Representative Capacity'—Failure to Disclose Principal. Under Laws 1899, p. 345, § 20, an officer of a corporation who signs a note without indicating his representative capacity other than by following his name by “Secy.” and no words are used showing that the corporation is obligated, is individually liable on the note, although the note was written on a blank form of a receipt giving the name of a corporation at the top, and its corporate' seal was attached.</p>