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Soda Dispensing Systems Inc. (SDS) was owned by two shareholders, each of whom owned half the stock. One shareholder was president and the other was vice president. Their shareholders' agreement stated that neither could commit corporate property without the written consent of the other. When SDS went out of business, the two agreed to sell the assets, split the proceeds, and pay $9,000 to their accountant, Carter. Later, the president committed SDS to pay Carter $24,000, claiming that he had the authority, as president, to make that commitment. When the accountant tried to collect, the vice president objected, asserting that the president exceeded his authority. The accountant filed a lawsuit against the vice president seeking payment. How should the court rule? Discuss fully.
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