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

McArthur (P) contracted to serve as an advertising solicitor with the promoters of Times Publishing Co. (D) for one year starting on October 1, 1889. P was discharged in April of 1890. The corporation was not formed until October 16, 1889, even though a paper was published and P began his duties on October 1. All stockholders, directors, and officers knew of his contract when the corporation was formed and no one objected to or repudiated it.

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