Stephens v. Gall

Citations

• 179 F. 938
• 1910 U.S. Dist. LEXIS 306

Syllabus

<p>1. Corporations (§ 370*) — Powers—Scope. '</p> <p>The scope of a corporation’s business is limited by its charter.</p> <p>[Ed. Note. — For other cases, see Corporations, Cent. Dig. §§ 1511-1515; Dec. Dig. § 370.*]</p> <p>2. Corporations (§ 400*) — Agent’s Authority — Limitation.</p> <p>A corporation’s agent has no implied authority to bind a corporation by contracts not within its charter powers.</p> <p>[Ed. Note. — For other cases, see Corporations, Cent. Dig. § 1587; Dec. Dig. § 400.*]</p> <p>3. Corporations (§ 379*) — Powers—Partnership Relations.</p> <p>A corporation chartered to buy and sell grain, etc., for its customers, cannot form a partnership relation with another.</p> <p>[Ed. Note. — For other cases, see Corporations, Cent. Dig. § 1538; Dec. Dig. § 379.*</p> <p>Power to form partnership, see note to Wallerstein v. Ervin, 50 C. C. A. 131.]</p> <p>4. Principal and Agent (§ 69*) — Rights op Agent — Interest in Contracts.</p> <p>An agent cannot use his fiduciary relation to obtain personal advantages from a contract made for his principal, and there can be no implied understanding between them of a joint interest in such contracts.</p> <p>[Ed. Note. — For other cases, see Principal and Agent, Cent. Dig. §§ 130-145; Dec. Dig. § 69.*]</p> <p>5. Principal and Agent (§ 69*) — Agent’s Acts — Validity.</p> <p>Acts of an agent tending to violate his fiduciary duty are not only invalid as to the principal, but are against public policy.</p> <p>[Ed. Note. — For other cases, see Principal and Agent, Dec. Dig. § 69.*]</p> <p>6. Account (§ 10*) — Joint Relations.</p> <p>Since an agent of a commission company could not make a valid brokerage contract with complainant whereby the company was made the agent’s partner in the transaction and he would share in the profits, of which disability complainant knew, complainant cannot compel a joint accounting between the agent and the company.</p> <p>[Ed. Note. — For other cases, see Account, Dec. Dig. § 10.*]</p> <p>7. Equity