Smith v. Ford Motor Co.

LAKE, Justice.

The complaint alleges that, after its incorporation, Clover-dale adopted the contract of 18 May 1971 concerning the plaintiff’s employment as its president and general manager. Although a corporation may not technically ratify a contract made on its behalf prior to its incorporation, since it could not at that time have authorized such action on its behalf, it may, after it comes into existence, adopt such contract by its corporate action, which adoption may be express or implied, and thereby become liable for its performance. McCrillis v. A & W Enterprises, Inc., 270 N.C. 637,…