BILLS AND NOTES-PERSONAL LIABILITY OF AGENT WHO SIGNS NOTE WHICH PRINCIPAL HAS NO LEGAL POWER TO EXECUTE

Abstract

Defendant gave a note, signed by him in his representative capacity as village president, to plaintiff in payment for services rendered to the village. Defendant signed after he was authorized to do so by a resolution of the village board of trustees. The facts showed that the parties understood the village to be the primary obligor on the note. Actually, the village had no legal power to make such notes and could not have been indebted by them. Plaintiff sued defendant as an individual and won a verdict in the trial court. On appeal, held, reversed. Defendant having signed in a representative capacity was not personally bound, inasmuch as he was given permission by the board of trustees, and because the plaintiff was charged with notice of the village\u27s lack of capacity. Greenlee v. Beaver, (Ill. 1948) 79 N.E. ( 2d) 822