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.
Executors are liable personally upon contracts which they attempt to make in their official capacity when they cannot bind the estate, unless they specifically contract against a personal liability.1 They are liable personally on their notes,2 even if they sign in their official capacity,3 as by signing "as executor,"4 or by signing "The Estate of E. Langevin by Achille Midland, Administrator,"5 or by accepting a draft, "accepted to be paid when funds are received for the estate. C. Carter, Administrator."6 The executor or administrator is liable personally, even if the note signed by him as executor and the like is given to take up a debt of the decedent.7 So an executor is personally liable on his acceptance of an order drawn on him payable out of the rentals of the estate.8 So where A, as administrator of B's estate, bought a team to operate B's farm, and A signed the letter whereby the contract of sale was made, "A, administrator," A was held liable personally.9 If they secure the note by mortgaging part of the estate they are personally liable for a deficiency after foreclosure, this not being a waiver of personal liability.10 Where they sign as executors, "but not personally,"11 or where there is no new consideration and the note is in the hands of the payee,12 there is no personal liability on the contract, if the estate is properly administered. As to payee the executor may be relieved on a note in settlement of his decedent's claim by showing a deficiency in decedent's estate.13 An executor is liable for commission on a loan which was not conanimated because the executor could not get a proper order of court to mortgage the realty.14 An executor who carries on decedent's business is personally liable for new debts thus incurred.15 He is personally liable on his contract for sawing decedent's lumber.16 In some cases the personal liability of the executor may exist even if the executor is authorized by will to carry on a business and to incur debts. Even if the will authorizes the executor to carry on "some legitimate business,"' the executor is personally liable for debts incurred in such business.17 The executor is not, however, personally liable unless the contract purports to have been made with him. If an executor signs in his official capacity in indorsing a note owned by decedent, which note the executor is transferring to a vendee thereof under authority of law, he incurs no personal liability.18 By statute an executor may be free from certain kinds of liability imposed on him.19
7 In re Crowther (1895), 2 Ch. 56.
8 Frey v. Eisenhardt, 116 Mich. 160; 74 N. W. 501; citing Althei-mer v. Hunter, 56 Ark. 159; 19 S. W. 496; Laible v. Ferry, 32 N. J. Eq. 791; Lucht v. Behrens, 28 O. S. 231; 22 Am. Rep. 378.
9 McMillan v. Cox, 109 Ga. 42; 34 S. E. 341.
10 Furst v. Armstrong, 202 Pa. St. 348; 90 Am. St. Rep. 653; 51 Atl. 996.
11 Bauerle v. Long. 187 111. 475; 52 L. R. A. 643; 58 N. E. 458.
1 Tucker v. Grace, 61 Ark. 410; 33 S. W. 530; Melone v. Ruffino, 129 Cal. 514; 79 Am. St. Rep. 127; 62 Pac. 93; In re Page, 57 Cal. 238; Mitchell v. Hazen, 4 Conn. 495; 10 Am. Dec. 169; De Coudres v. Trust Co., 25 Ind. App. 271; 81 Am. St. Rep. 95; 58 N. E. 90; Mills v. Kuy-kendall, 2 Blackf. (Ind.) 47; Lus-comb v. Ballard, 5 Gray (Mass.) 403; 66 Am. Dec. 374; Sumner v.
Williams, 8 Mass. 162; 5 Am. Dec. 83; Germania Bank v. Michaud, 62 Minn. 459; 54 Am. St. Rep. 653; 30 L. R. A. 286; 65 N. W. 70; First National Bank v. Collins, 17 Mont. 433; 52 Am. St. Rep. 695; 43 Pac. 499; Doolittle v. Willet, 57 N. J. L. 398; 31 Atl. 385; Parker v. Day, 155 N. Y. 383; 49 N. E. 1046; Moorehead Banking Co. v. Moore-head, 122 N. C. 318; 30 S. E. 331; Thomas v. Moore, 52 O. S. 200; 39 N. E. 803; West v. Dean, 15 Ohio C. C. 261; Hall v. Wilkinson, 35 \V. Va. 167; 12 S. E. 1118.
2 Lynch v. Kirby, 65 Ga. 279; Dunne v. Deery, 40 Ia. 251; Winter v. Hite. 3 Ia. 142; White v. Thompson; 79 Me. 207; 9 Atl. 118; Germania Bank v. Michaud. 62 Minn. 459; 54 Am. St. Rep. 653; 30 L. R. A. 286; 65 ST. W. 70; First National Bank v. Collins, 17 Mont. 433; 52 Am. St. Rep. 695; 43 Pac. 499.
3 Dunne v. Deery, 40 Ia. 251; Boyd v. Johnston, 89 Tenn. 284; 14 S. W. 804.
4 Hopson v. Johnson, 110 Ga. 283; 34 S. E. 848; Morehead Banking Co. v. Morehead, 116 N. C. 410; 21 S. E. 190; In re Claghorn's Estate, 181 Pa. St. 600; 59 Am. St. Rep. 680; 37 Atl. 918; Boyd v. Johnston, 89 Tenn. 284; 14 S. W. 804.
5 Germania Bank v. Michaud, 62 Minn. 459; 54 Am. St. Rep. 653; 30 L. R. A. 286; 65 N. W. 70.
6 Carter v. Thomas, 3 Ind. 213.
7 Cornthwaite v. Bank. 57 Ind. 268; In re Claghorn's Estate, 181 Pa. St. 600; 59 Am. St. Rep. 680; 37 Atl. 918.
8 Perry v. Cunningham, 40 Ark. 185.
9 Rich v. Sowles, 64 Vt. 408; 15 L. R. A. 850; 23 Atl. 723.
10 De Coudres v. Trust Co., 25 Ind. .4pp. 27i; 81 Am. St. Rep. 95; 58 N. E. 90.
11 Morehead Banking Co. v. More-head, 116 N. C. 413; 21 S. E. 191.
12 Germania Bank v. Michaud, 62 Minn. 459; 54 Am. St. Rep. 653; 30 L. R. A. 286; 65 N. W. 70.
13 McGrath v. Barnes, 13 S. C. 328; 36 Am. Rep. 687; Boyd v. Johnston, 89 Tenn. 284; 14 S. W. 804; East Tennessee, etc., Co. v. Gaskell, 2 Lea (Tenn.) 742.
 
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