Hall v. Auburn Turnpike Co.

Citations

• 27 Cal. 255

Syllabus

<p>Power of its Officers to bind a Corporation. — The officers of a corporation have no power to execute the note of the corporation for a debt having no relation to its business, due from a third person to the payee, nor can they ratify such note after its execution. A note made for such, purpose creates no liability in the payee's hands against the corporation.</p> <p>Evidence in Suit against a Corporation.—In an action brought against a corporation by the payee of a note executed by its officers in the name of the corporation, for a debt due the payee from a third person, and having no relation to the business of the corporation, evidence that the note was not given for the debt of the corporation is admissible under an answer denying the execution of the note.</p>