Citizens' Central National Bank v. Appleton - 216 U.S. 196 (1910)
U.S. Supreme Court
Citizens' Central National Bank v. Appleton, 216 U.S. 196 (1910)
Citizens' Central National Bank of New York v. Appleton
Argued January 27, 28, 1910
Decided February 21, 1910
216 U.S. 196
Although a contract made by a corporation may be illegal as ultra vires, an implied contract may exist compelling it to account for the benefits actually received.
A national bank which guarantees a loan made by another bank in pursuance of an agreement that it be paid the amount due it by the borrower out of the proceeds of the loan cannot void its liability for the amount actually received by it pursuant to the arrangement on the ground simply of ultra vires; it may be liable for money had and received.
190 N.Y. 417 affirmed.
The facts are stated in the opinion.