Des Moines Manufacturing & Supply Co. v. Tilford Milling Co.

Citations

• 9 S.D. 542
• 70 N.W. 839
• 1897 S.D. LEXIS 110

Syllabus

<p>1. The corporate powers of a corporation being vested in its board of directors by the statute (Comp. Laws, § 2926), its officers have no power to bind it by contracts not authorized by the directors.</p> <p>2. The purchaser of property from a corporation has the right to defend against a mechanic’s lien claimed thereon by showing- that the contract upon which the right to a lien is based was not made by nor legally binding on, the corporation.</p> <p>3. One contracting with the officers of a corporation, acting in its name, is chargeable with notice of the limit of their powers and authority to bind the corporation.</p>