Contel Credit Corp. v. Central Chevrolet, Inc.

Contel Credit Corporation (Contel) financed the lease of a telephone system to Hallman Chevrolet, Inc. (Hallman). Payment of the lease was guaranteed by Central Chevrolet, Inc. (Central). Central’s guaranty was signed by one Joseph Pugia, who claimed to be Central’s vice president and chief operations officer. The guaranty was supported by a certificate of the secretary of Central, certifying that Central’s board of directors had authorized Pugia to execute and deliver the guaranty on Hallman’s debt. Hallman went bankrupt, and Contel brought this action against Central to recover on the…