Please ensure Javascript is enabled for purposes of website accessibility
Home / Opinion Digests / Contract / Contract – Open Account – Construction Supplies – Agency – Corporate Restructuring – Actual Authority (access required)

Contract – Open Account – Construction Supplies – Agency – Corporate Restructuring – Actual Authority (access required)

JMK, Inc. v. McAllister Commercial Construction Co. The defendant-construction company spun off its residential division into a new company. Even if the plaintiff-supplier knew that Jacob Phelps, one of defendant’s principals, went to work for the new residential construction company, this did not mean that Phelps lost his authority as an agent for defendant. Defendant is responsible for supplies that Phelps bought for the new company on defendant’s account with plaintiff. We affirm summary judgment for plaintiff.

Leave a Reply

Your email address will not be published. Required fields are marked *

*