Cote Brothers v. Granite Lake Realty Co.

The defendant corporation and its allied corporation Granite Lake Camp Associates, Inc. were both small close corporations which were organized, operated and managed by the same three individuals as stockholders, officers and directors. The issue in this case is whether the defendant is hable on a mercantile claim for merchandise delivered which, it is argued, no officer of the corporation was authorized to purchase. The guide lines for deciding this issue were set forth in Holman-Baker Co. v. Pre-Design Co., 104 N. H. 116, 117-118 as follows: “In the world of credit there is emerging a rule,…