Southfield Co. v. Christensen

Plaintiff Southfield Company, a Michigan corporation, brought suit on four promissory notes of $500 each, executed by defendants Emanuel Christensen and Edna Christensen, his wife, in settlement of the balance due on a land contract. Defendants denied liability and asserted the affirmative defenses of failure of consideration, fraudulent inducement, overreaching, and that plaintiff’s corporate powers were suspended at the time the notes were executed, because it was in default under the statutes which require corporations to file annual reports and pay franchise fees.

All these issues were…