Farmers Market v. Austin

Citations

• 118 Wash. 103
• 203 P. 42
• 1921 Wash. LEXIS 944

Syllabus

<p>Corporations (178) — Contracts—Notice of Authority of Officer to Person Dealing With Corporation. Where a debtor gives a check executed in the name of a corporation, by himself as manager, to his individual creditor in payment of a debt, such creditor, having parted with nothing of value in reliance upon any act of the corporation, is chargeable with notice that the manager had no authority to pay his private debt, and cannot defeat action for recovery of the amount on the theory of being an innocent third party.</p> <p>Assignments (15) — Equitable Assignments — Loss or Injury to Debtor. Although a corporation is indebted to its general manager, the execution of a check of the corporation by himself as manager in payment of his private debt does not constitute an equitable assignment, where such check is only part of an entire transaction whereby the corporation is deprived of an amount in excess of its indebtedness to him.</p> <p>Corporations (165) — Representation—Ratification. Where a corporation repudiates the act of its general manager in executing a corporate note in payment of a private debt as soon as it has knowledge of the act, it cannot be said to have ratified the act.</p> <p>Same (165). The right of action of a corporation against a person to whom its agent had wrongfully paid corporate money is not waived by any election of remedies against such agent in an effort to recover the money.</p> <p>Husband and Wife (84) — Community Property — Liability of Wife — Implied Contract. Where money of a corporation is applied by an agent to the wrongful payment of his private debt to a married woman, her liability for the repayment of the money to the corporation arises on an implied contract for money had and received, and not for a tort, and the community of husband and wife is liable therefor.</p>