Barbour v. Weld

The facts of this suit set forth in the master’s report are as follows:

On May 16,1906, the Johnson Educator Food Company made an agreement with the defendant Weld whereby he was to advise that company as to “ the best method to pursue [in getting more capital rendered necessary by increasing business], . . . also to float whatever preferred stock your company may see fit to issue”; and the company was to pay him therefor $5,000. This contract was entered into in behalf of the corporation by vote of its directors.

The Johnson Educator Food Company was a Massachusetts corporation with a capital…