Denniston v. Home Life & Investment Co.

Citations

• 162 Pa. 86
• 29 A. 275
• 1894 Pa. LEXIS 945

Syllabus

<p>Corporations — Sale of charter — Liability of corporation — Ratification.</p> <p>Where several persons purchase the charter and stock of a corporation, and guarantee the vendors against any claim for commissions which might be made by an agent in whose hands the charter had been placed for sale, the purchasers are personally liable, and nothing short of a clear and unequivocal ratification .can render the company liable on the guaranty.</p> <p>In such a case a resolution authorizing the treasurer of the company to repay the purchasers the money advanced by them for the purchase of the charter, will not amount to a ratification, when it does not appear from the minutes of the corporation, or in any other way, that the company knew of the existence of the guaranty when the resolution was passed.</p>