Defendant secretary of a corporation appealed a judgment from the Superior Court of Alameda County (California), which found for plaintiff realty broker in his action to recover the reasonable value of his services rendered under a written contract against the secretary.
Overview: doctors notes for work laws
The secretary executed a written agreement with the realty broker that authorized the realty broker to sell certain real property that the corporation owned. The realty broker obtained a purchaser who made a written offer and tendered a deposit, which the secretary accepted. The secretary lacked the authority to enter into such a transaction and the corporation repudiated it. The realty broker brought an action to recover the reasonable value of his services already rendered under the written agreement and the trial court ruled in his favor because the secretary had induced the realty broker to enter into a contract that the secretary knew he had no authority to execute. On appeal, the court affirmed. The court held that it was well-settled law that a party who entered into a written contract in the name of his principal without believing in good faith that he had the authority to have done so was personally liable to third persons. The secretary assumed to act for the corporation in securing the realty broker's services, which exposed his agency authority, and then entered into a written contract in the corporation's name without authority, which made him liable as a principal.
The court affirmed the judgment of the trial court in favor of the realty broker in his action to recover the reasonable value of his services already rendered under a written contract against the secretary and found the secretary liable as a principal.