National Biscuit v. Stroud

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National Biscuit v. Stroud
Court Supreme Court of North Carolina
Citation 249 N.C. 467, 106 S.E.2d 692
Date decided September 13, 1956
Appealed from First District Appellate Court


In March 1953 in North Carolina both Stroud and Earl Freeman joined a general partnership to sell groceries under the names of Stroud’s Food Center. The National Biscuit Company (plaintiff) sold bread to this partnership. The defendant Stroud told an agent of the plaintiff that he would not be responsible for any extra bread sold by them to Stroud’s Food Center. The plaintiff went back and forth with the agent of the defendant to deliver the bread in the amount of $171 to the food center. Both Stroud and Freeman by agreement dissolved the partnership, leading the business to close on February 1956, and this notice went on the newspaper and was published in Carteret County. Based on the plaintiff’s sale of bread to the partnership, the Supreme Court of North Carolina gave the plaintiff a sum of $171 with cost and interest. After, Stroud and Freeman sought a review of the court’s judgement.


Stroud (defendant) inform the agent of the Biscuit company that he was not responsible for bread sells to the partnership. With the judgements of the court should the defendant be liable for the purchases made by the defendant Freeman?




What Stroud's partner does he is also responsible for. Every partner is an agent for the partnership, for apparently carrying on in the usual way the business of the partnership, unless the one acting has in fact no authority to conduct such business, and the 3d party is aware that he has no such authority.


N.C. Gen. Stat. 59-45 provides that all partners are jointly and severally liable for the acts and obligations of the partnership.