Estate of the Van Haagen Soap Co.

Citations

• 141 Pa. 214
• 21 A. 598
• 1891 Pa. LEXIS 1064

Syllabus

<p>[To be reported.]</p> <p>1. Where, at the time of receiving an advance of money, an officer of a corporation gave to the person who advanced it his individual note for the amount, the presumption is that the note was given as the consideration, and not as a security for the money.</p> <p>2. It is competent, however, to rebut this presumption by showing that in fact the money was lent to the corporation for its use, that this was the understanding of all parties, and that the note given by the officer was in the nature of a collateral security.</p> <p>3. In this case, it being shown that the loan was procured on behalf of the company and applied to its use, under authority so to do, and that all parties so understood the transaction, the testimony was sufficient to rebut said presumption and to charge the corporation.</p>