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Church Bound to Financial Secretary's Misrepresentation

Church argued it had no knowledge of secretary's acts.

Christian Methodist Episcopal Church v. S & S Construction Company, Inc., 615 So.2d 568 (Miss. 1993)

Key point: A church can be legally bound by the misrepresentations of one of its officers so long as the officer was acting within the scope of his or her authority, even if the church had no knowledge of the misrepresentation and did not benefit from it.

The Mississippi Supreme Court ruled that a church was legally bound by the misrepresentation of its financial secretary.

The church signed a contract with a local contractor for the construction of a building at a cost of $1.2 million. From the start, payments under the contract were late. The contractor eventually informed the church that construction would be stopped until payments were brought up to date and the church placed in escrow sufficient monies to pay the balance of the contract. The church brought payments up to date, and then ...

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Posted:
  • November 1, 1993

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