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National Biscuit v. Stroud

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National Biscuit v. Stroud
Court
Citation
Date

Facts: Stroud and Freeman were partners in a grocery store. Stroud told NB that he would personally not be responsible for any additional bread sold by NB to grocery store. Thereafter, Freeman ordered bread from NB to sell in grocery store.

Issue: Is Stroud liable for purchase?

Holding: Yes

Reasons: 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 partnerhip, 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.