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FRAMINGHAM SAV. BANK v. SZABO

No. 79-1525.

617 F.2d 897 (1980)

FRAMINGHAM SAVINGS BANK, Plaintiff, Appellant, v. Joseph SZABO, Trustee, Defendant, Appellant.

United States Court of Appeals, First Circuit.

Decided March 27, 1980.

Attorney(s) appearing for the Case

George R. Desmond, Framingham, Mass., for plaintiff, appellant.

Marshall F. Newman, Boston, Mass., with whom Newman & Newman, P. C., Boston, Mass., was on brief, for defendant, appellee.

Before COFFIN, Chief Judge, CAMPBELL and BOWNES, Circuit Judges.

COFFIN, Chief Judge.

The sole question to be decided on this appeal is whether a corporation may be bound under Massachusetts law by the terms of a contract executed by its founder for its benefit, when the corporation had no legal existence at the time the contract was executed, but when after legal incorporation the firm accepted the benefits of the contract with knowledge of its terms. We hold that the corporation in this case is bound and therefore reverse the...

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