This section is from the book "The Law Of Contracts", by William Herbert Page. Also available from Amazon: Commercial Contracts: A Practical Guide to Deals, Contracts, Agreements and Promises.
The vice president as such has no implied authority to bind the corporation if the president is capable of acting.1 In cases of the absence of the president, or his incapacity to act, the vice president, acting as president, may exercise such, powers ordinarily as the president might exercise.2 In many corporations a special grant of power is made to one or more vice presidents. In such cases they may bind the corporation within the power thus granted to them. Without any express grant of power, the corporation may acquiesce in the assumption of the vice president of certain powers, so that they are bound by his contracts made within the limits of these powers.
11 National State Bank v. Tool Co., 157 Ind. 10; 60 N. E. 699.
12 Jones v. Stoddart, - Ida. - ; 67 Pac. 650.
13 Trent v. Sherlock, 26 Mont. 85; 66 Pac. 700.
14 Mott v. Danville Seminary, 129 111. 403; 21 N. E. 927; Asher v. Sutton, 31 Kan. 286; 1 Pac. 535.
15 Blen v. Mining Co., 20 Cal. 602; 81 Am. Dec. 132.
16 Carney v. Ins. Co., 162 N. Y. 453; 76 Am. St. Rep. 347; 49 L. R. A. 471; 57 N. E. 78.
17 Bowditch Furniture Co. v.
Jones, 74 Conn. 149; 50 Atl. 41; Wallace v. Packing Co., 25 Wash. 143; 64 Pac. 938.
18 Bloch Queensware Co. v. Metz-ger, 70 Ark. 232; 65 S. W. 929 (even if the two corporations have substantially the same stockholders ).
1 Shavalier v. Lumber Co., 128 Mich. 230; 87 N. W. 212.