A de facto corporation is as liable on its contracts as a corporation de jure. It cannot deny its own corporate existence in order to evade liability.1 Its mortgage of its property is valid.2 On the other hand those who have dealt with such an organization on the theory that it is a corporation, cannot deny its corporate existence in an action based upon such dealings, and treat such corporation as a partnership.3 This rule rests in part upon the theory of the nature of the de facto corporation ; and in part upon the rule that persons who deal with an organization as if it were a corporation, are estopped to deny its corporate existence.4

5 Crystal, etc., Co. v. Roseboom, 91 111. App. 551; Carroll v. Bank, 19 Wash. 639; 54 Pac. 32; Williams v. Lumber Co., 72 Wis. 487; 40 N. W. 154.

6 Citizens' Bank v. Jones, 117 Wis. 446; 94 N. W. 329.

1 Lamkin v. Mfg. Co., 72 Conn. 57; 44 L. R. A. 786; 43 Atl. 593, 1042; Cravens v. Mills Co., 120 Ind. 6; 16 Am. St. Rep. 298; 21 N. E. 981; Doty v. Patterson, 155 Ind. 60; 56 N. E. 668; Larned v. Beal, 65 N. H. 184; 23 Atl. 149.

2 McTighe v. Construction Co., 94 Ga. 306; 47 Am. St. Rep. 153; 32 L. R. A. 208; 21 S. E. 701; also cited as Georgia, etc., R. R. v. Mercantile, etc., Co.

3 Whitney v. Wyman, 101 U. S. 392; Gartside Coal Co. v. Maxwell, 22 Fed. 197; Owensboro Wagon Co. v. Bliss. 132 Ala. 253; 00 Am. St. Rep. 907; 31 So. 81; Louis Snider's Sons' Co. v. Troy, 91 Ala. 224; 24 Am. St. Rep. 887; 11 L. R. A. 515; 8 So. 658; Humphreys v. Mooney, 5 Colo. 282; Stafford National Bank v. Palmer, 47 Conn. 443; Planters & M. Bank v. Padgett, 69 Ga. 159; Arnold v. Conklin, 96 111. App. 373; Ward v. Brigham, 127 Mass. 24; Salem First National Bank v. Almy, 117 Mass. 476; Fay v. Noble, 7 Cush. (Mass.) 188; Merchants, etc., Bank v. Stone, 38 Mich. 779; Finnegan v. Noerenberg, 52; Minn. 239; 38 Am. St. Rep. 522; 18 L. R. A. 778; 53 N. W. 1150; Stout v. Zulick, 48 N. J. L. 599; 7 Atl. 362; Jessup v. Carnegie, 80 N. Y. 441; 36 Am. Rep. 643; Central City Savings Bank v. Walker, 66 N. Y. 424; Second National Bank v. Hall, 35 O. S. 158; Rowland v. Furniture Co., 38 O. S. 269; Rutherford v. Hill, 22 Or. 218; 29 Am. St. Rep. 596; 17 L. R. A. 549: 29 Pac. 546.