Investment Co. v. Eldridge

Citations

• 175 Pa. 287
• 34 A. 629
• 1896 Pa. LEXIS 1246

Syllabus

<p>Corporations — Declarations of president — Promissory notes.</p> <p>A corporation advanced money to the defendant to purchase stock of the corporation. The defendant gave his promissory note to the corporation and assigned his stock as collateral security therefor. The note was renewed from time to time, and finally suit was brought against the defendant by the corporation on the last renewal note. The defendant offered testimony to show that the president of the corporation, at various times after the date of the original note, had given to the defendant false information as to the real condition of the company’s affairs. Held, (1) that the testimony was properly rejected, as the president had no right to bind the company by any such declarations, as they were outside the line of his duty; (2) that the claim of the defendant that he might or would have sold his stock at a price sufficient to protect himself if he had had proper information was imaginary and speculative.</p>