This section contains the nature of the case and procedural background.

Bosquez and Gonzalez (D) were partners in a business that sold broadcast time on radio station in Mexico and each owned 50% of the stock. Bosquez was the president. The station was owned and operated by Radiodifusora (radio station). In 1957, a radio station made a contract with P and did not perform on it. Bosquez executed a promissory note for $40,000 partly in exchange for the promise not to sue the radio station. P sued both partners on the note. D argued that Bosquez had no authority to execute a note on behalf of the partnership.

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