Darst v. Gale

Citations

• 83 Ill. 136

Syllabus

<p>1. Agency—ratification equivalent to mthority. Where the secretary of an insurance company, without any express authority, pledges bonds of the company, secured by deed of trust, for an indebtedness and for future advances, but with the knowledge and subsequent acquiescence of the directors, this will be equivalent to a prior authority, and the act will he binding, in the absence of proof of fraud.</p> <p>2. Cobfobatton—who mazy question its act. The purchaser of real estate of a private corporation, at a judicial sale, who is neither a stockholder nor creditor, can not question the power of the corporation to make a prior deed of trust upon the same property, and have the same set aside in his favor, when he purchases with notice of such incumbrance, and the owner of the prior indebtedness has been guilty of no fraud.</p> <p>8. Same—ultra vires. It is the general rule, that the plea of ultra vires shall not prevail where, instead of advancing justice, it will accomplish a wrong. Where a corporation receives money upon the faith of its act, and uses the same, and the contract has been fully performed, it, or one succeeding to its rights, can not plead a want of authority to do the act by which the money is obtained.</p> <p>4. Deed of trust—whether paid, or standing security. The parties to notes secured by deed of trust have the right, in their mutual dealings, to treat them as unpaid, and as standing as security for future advances, and ■ they will be good for such advances as between the parties and all others not prejudiced thereby.</p> <p>5. Acknowledgment. The acknowledgment of a deed of trust, taken by one of the trustees, is void as to such trustee, but if the execution of the deed is proved, this will cure the defect.</p> <p>6. Injunction—assessing damages on dissolution. The statute authorizes the assessment of damages by the court, upon the dissolution of an injunction, in all cases, as well where the injunction is but part of or incident to the princip