C. A. Nimocks was a promoter engaged in organizing the
Times Printing Company. On September 12, on behalf of the
proposed corporation, he made a written contract with McArthur for her services as comptroller for a one-year period
beginning October 1. The Times Printing Company was incorporated October 16, and on that date McArthur commenced
her duties as comptroller. Neither the board of directors nor
any officer took formal action on her employment, but all the
shareholders, directors, and officers knew of the contract made
by Nimocks. On December 1, McArthur was discharged without cause.
a. Does she have a cause of action against the Times Printing
Company? Explain.
b. Does she have a cause of action against Nimocks? Explain.