Egbert v. Sun Co.

Citations

• 126 F. 568
• 1903 U.S. App. LEXIS 5190

Syllabus

<p>1. Corporations — Representation by Officers — Contracts Within Apparent Authority</p> <p>A corporation is bound by a contract of employment made in its name and behalf by its president, who largely controlled the management of its business, and was apparently acting within his authority, and where the employs left his former position and entered into such contract at his solicitation, and relying in good faith on his supposed authority to act for the corporation.</p> <p>11. See Corporations, vol. 12, Cent. Dig. § 1616.</p> <p>8. Same — Ratification—Accepting Services of Employe.</p> <p>The president of defendant corporation contracted in -writing in its behalf for the employment of plaintiff at a stated salary, the contract reserving the right to terminate the employment by paying him a sum equal to a year’s salary. Plaintiff entered upon the employment, and his services were accepted and paid for at the stipulated salary until defendant exercised the right given by the contract to discharge him. Held, that by so accepting and paying for his services and exercising the privilege given by the contract either with knowledge of its terms or without inquiring in regard thereto, the board of directors must be deemed to have ratified the same in its entirety, and that defendant was liable thereon for the stipulated consideration for the exercise of the power to discharge.</p> <p>8. Contract of Employment — Construction.</p> <p>By a written contract embodied in a letter of defendant, plaintiff was employed by defendant “at a salary of $5,000 per year,” and the contract contained this further provision: “If for any reason it is impractical and not convenient for the Sun Company to retain you, the said company will pay you $5,000 or one year’s salary at.the termination of this arrangement, provided, of course, that such termination is at the request of the Sun Company.” Held, that such provision had reference to a termination before the end of a year, and that on the dis