CORPORATIONS--OFFICERS AND AGENTS-AUTHORITY OF MANAGER TO ENTER INTO A LIFETIME EMPLOYMENT CONTRACT

Authors

Peter Van Domelen S.Ed., University of Michigan Law SchoolFollow

Abstract

In 1924, the plaintiff, while working as an employee of the defendant corporation, suffered an injury which resulted in the loss of his leg. During his period of convalescence the plaintiff was visited by the district superintendent of the defendant corporation and was assured that the corporation would pay for his medical expenses and furnish him with a lifetime job in exchange for his promise to forbear from suit. Upon recovery, the plaintiff returned to work and served the defendant in various capacities until 1949, at which time he was discharged without cause. The plaintiff brought an action to recover damages for breach of contract and the trial court entered a judgment in his favor. On appeal, held, reversed. A lifetime employment contract is not enforceable against a corporation unless there is proof that the superintendent had definite authority, either under bylaw or action of the board of directors, to make the contract or unless the contract was ratified or its benefits accepted with full knowledge of the circumstances. Pullman Co. v. Ray, (Md. 1953) 94 A. (2d) 266.

Recommended Citation

Peter Van Domelen S.Ed., CORPORATIONS--OFFICERS AND AGENTS-AUTHORITY OF MANAGER TO ENTER INTO A LIFETIME EMPLOYMENT CONTRACT, 51 Mich. L. Rev. 1079 (1953).
Available at: https://repository.law.umich.edu/mlr/vol51/iss7/10