Southern-Gulf Marine Co. v. Camcraft
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| Southern-Gulf Marine Co. v. Camcraft | |
| Court | |
|---|---|
| Citation | |
| Date decided | April 3, 1974 |
Facts
SGM contracted w/ Camcraft to purchase a 156 supply vessel. The K was a form K from Camcraft. K had a provision that said the owner (SGM) was a citizen of the US within meaning of Shipping act of 1916. SGM later told Camcraft that they were a corporation of Cayman Isles of British West Indies, and that would ratify, confirm, and adopt the K. Camcraft defaulted on K obligation.
Procedural History
Trial judge held that K needs 2 parties, and SGM was incorporated after signing day of K, so K invalid, and was not a Texas Corp.
Issues
Can K be found invalid because there was no such Corp. in existence at the time of signing?
Holding
No, D still made agreement & intended to enter into a K.
Reasons
Where a party has contracted with a corporation, and is sued upon the K, neither is permitted to deny the existence . . . of such corp." If situation was reversed and SMG tried to get out of K, Camcraft could hold them to it.
