Hill v. Daniel

1. “A contract of guaranty or suretyship, entered into by an ordinary commercial or industrial corporation, not in furtherance of one of its authorized corporate purposes, is ultra vires.” Houser v. Farmers Supply Co., 6 Ga. App. 102 (64 S. E. 293). A corporation has no legal authority to execute a replevy bond in a laborer’s lien foreclosure under the Code of 1933, § 67-2401, brought against the principal on the bond, where such a contract of suretyship is not' authorized by the corporate charter and the foreclosure does not concern the rights or business of the corporation. The instant…