P. Curtis Ko Eune Co. v. Manayunk Yarn Manufacturing Co.

Citations

• 260 Pa. 340
• 103 A. 720
• 5 A.L.R. 1483
• 1918 Pa. LEXIS 517

Syllabus

<p>Corporations — Contracts—Contract with fire insurance adjuster —Authority of president — By-laws•—Repudiation of contract — Assumpsit — C ommission.</p> <p>1. The president of a corporation, who under its by-laws is given general control and management of its business and affairs, has authority to employ an insurance adjuster to adjust a fire loss.</p> <p>2. Defendant corporation having suffered a loss by fire, its president employed plaintiff to adjust the loss, plaintiff at once began to execute the contract, but later in the same day it was informed that the board of directors of defendant had by resolution repudiated the agreement made by the president of the company and it was notified to stop work. In an action of assumpsit by plaintiff to recover the loss sustained from the breach of the contract it appeared that defendant’s by-laws provided that “the president shall be the chief executive officer and head of the company and in the recess of the board of directors shall have the general control and management of its business and affairs.” Held, that the president had authority to make the contract, and a verdict and judgment for plaintiff were sustained.</p> <p>3. In such case plaintiff was entitled to its commission on the amount of the adjustment, although a portion thereof was received by defendant as the proceeds of damaged goods sold by the insurance companies.</p>