Littlewort v. Davis

Citations

• 50 Miss. 403

Syllabus

<p>1. Absolute Deed— When a Mortgage. — It is well settled that an absolute deed will be valid and effeotual as a mortgage, if it clearly appear that it was designed as a security for money. And tbis may be shown to-be the intention and effect of tbe deed, by a contemporaneous or subsequent writing, or by an agreement resting in parol. Prewett v. Dobbs, 13 S. & M., 440.</p> <p>2. School Funds — Loan thereof — Security, etc. — A loan of tbe school fund upon mortgage or other security than that named in tbe statute, is a misapplication of the fund for which tbe trustees would have been personally liable. Lindsay v. Marshall, 13 S. & M., 590. But the statute does not make void a mortgage or other security for a loan of the school funds.</p> <p>3. Corporations — Contracts thereon — When Yalid. — If a corporation make a contract outside of the purposes of its creation, it is void, because it had not power over the subject in reference to which it acted. But if it contracts with reference to a subject within its powers, but in so doing exceeds them, the person with whom it deals cannot set up such violation of its franchises to avoid the contract. School trustees are a quasi corporation.</p> <p>4. Bill in Chancery — Demurrer — Its Effect.— A demurrer to a bill admits all the allegations of fact, well stated in the hill, and reference cannot be had to exhibits to aid the bill.</p>