Leslie v. Wilshire

Citations

• 6 Wash. 282
• 33 P. 505
• 1893 Wash. LEXIS 278

Syllabus

<p>CORPORATIONS — INSOLVENCY — PREFERRING CREDITORS — UNAUTHORIZED CONTRACTS —ESTOPPEL.</p> <p>A chattel mortgage given by a dairy association cannot be held void on the ground that it is a preference of creditors by an insolvent corporation, when the evidence shows that the association had not enough money on hand to pay all of its indebtedness, but that its business was profitable; and that the mortgage was given for the purpose of inducing the mortgagee to continue to supply milk to the association, in order that its business might be carried on.</p> <p>Although a contract of a corporation may not have been properly authorized by its board of trustees, yet, where the corporation continues to receive the benefits accruing from such contract, it is estopped to deny the validity thereof.</p>