Court Opinion

ID: 9537384
Source: CourtListenerOpinion
Date Created: 2023-08-07 07:17:03.474183+00
Date Added: 2024-06-11T14:56:34.498791
License: Public Domain

CALLISTER, Justice
(dissenting).
I dissent. I am in accord with the state■ment in the main opinion to the effect that ■.the majority view is that an agent engaged an the selling of securities may, under some circumstances, have the implied authority to bind his principal to a repurchase or resell agreement.
However, in the instant case the agreement is to resell the stock for tivice its purchase price within a three-month period! This is certainly not an ordinary or usual resell agreement. It seems to me that any person offered such an unusual proposition would be put on notice as to the agent’s authority to bind his principal and should make inquiry concerning the same. Such an agreement would have to be expressly authorized by the board of directors.
If Timpson had the implied authority to enter into such a resell agreement, he would have the power to subject the corporation to a liability, the sudden maturing of which might easily absorb all of its capital.
McDONOUGH, J., concurs in the dissenting opinion of CALLISTER, J.