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Corporations Keyed to Hazen
A. Gay Jenson Farms Co. v. Cargill, Inc.
Citation:
309 N.W.2d 285 (Minn.1981)Facts
Warren and Cargill entered into a security agreement which provided that Cargill would loan money for working capital to Warren an open account financing up to a stated limit. Under this agreement, Warren would receive funds and pay its expenses by issuing drafts drawn on Cargill through Minneapolis banks. In 1970, Cargill contracted with Warren and other elevators to act as its agent to seek growers for a new type of wheat. Farmers were paid directly by Cargill for the seed. In 1971, Warrent contracted on Cargill’s behalf with various farmers for the growing of sunflower seeds for Cargill. Warren, as Cargill’s agent in the sunflower seed business, cleaned and packaged the seed in Cargill bags. During this period, Cargill continued to review Warren’s operations and expenses and recommend that certain actions should be taken. Warren purchased from Cargill various business forms printed by Cargill. After Warren ceased operations, it was found to be indebted to Cargill in the amount of #3.6 million. Plaintiffs brought this action to seek recovery of the sum, alleging that Cargill was jointly liable for Warren’s indebtedness as it had acted as principal for the grain elevator.
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Topic Resources
Topic Outline
Creation of Agency