Summary

Portrait of Noah Haynes Swayne Noah Haynes Swayne Railway Company v. McCarthy — Opinion of the Court

When a contract is not on its face necessarily beyond the scope of the power of the corporation by which it was made, it will, in the absence of proof to the contrary, be presumed to be valid. Corporations are presumed to contract within their powers. The doctrine of ultra vires, when invoked for or against a corporation, should not be allowed to prevail where it would defeat the ends of justice or work a legal wrong.
Source: Wikisource

Portrait of Noah Haynes Swayne Noah Haynes Swayne Railway Company v. McCarthy — Opinion of the Court

The contract with the defendant was for the transportation of the cattle the entire distance they were to go. It was stipulated that the company would forward 'sixteen cars, more or less, from East St. Louis to Philadelphia, at the rate of $130 per car, which is a reduced rate, made expressly in consideration of this agreement.' No other company was named, there was no mention of compensation to any other party, and nothing was said of a change to the cars of any other company on the way.
Source: Wikisource

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