Saunders v. Berrong

This case involves a contract of two of the three directors of a small corporation and an employee, by which one director and the employee agreed to pay the other director for refraining from bidding against them at a federal tax sale. The question is whether this contract is enforceable. With deference to my colleagues joining in the controlling opinion, I think it is not. First, this is a contract which plainly says on its face that it was for the purpose of getting Berrong, a director and apparently a dominant party, “to refrain from bidding against them for * * * assets” of the…