Schorman v. McIntyre

Citations

• 92 Wash. 116
• 158 P. 993
• 1916 Wash. LEXIS 1147

Syllabus

<p>Corporations — Representation by Agent — Liability of Agent— Scope of Authority — Purchase of Treasury Stock. A corporation’s agent for the purchase of hay is liable to a subscriber for treasury stock who had agreed to take stock in payment for hay in order to help out the company, where he substituted his own stock, falsely representing that it was the treasury stock subscribed for, and deducted the amount from the price of the hay without accounting to the company; since dealing in the stock was outside the scope of his employment, and he is estopped from asserting an agency by retaining the money.</p> <p>Same — Liability of Agent — Remedy of Purchaser of Stock. In such a case, the injury is not suffered alike by all the stockholders, as the subscriber is still bound to take from the company the treasury stock subscribed for, and may therefore maintain the action.</p>