Hicks v. Russell

Citations

• 72 Ill. 230

Syllabus

<p>Partnership—dissolution revolees all power of partners to contract in name of firm. A dissolution of partnership operates as a revocation of ail power in each partner to enter into contracts on behalf of the firm; and none of the partners afterwards can create any new contract or obligation binding upon the partnership.</p> <p>2. Same—notice of dissolution—when necessary. The power of each partner to contract in the name of the firm, within the legitimate scope of their business, and with persons accustomed to dealing with the partnership, continues until such persons have actual notice of a dissolution; but as to persons not in the habit of dealing with such partnership, a newspaper notice of dissolution is sufficient.</p> <p>3. Two firms were in the habit of dealing with each other, and one becoming indebted to the other, the debtor firm executed its note to the creditor firm, and one of the partners of the debtor firm executed a deed of trust to one of the partners of the creditor firm, on his individual property, to secure the debt. Both firms were dissolved, the partner upon whose property the deed of trust was executed assuming to pay the indebtedness of his firm. No further dealings occurred between the firms for three years, at the end of which time the partner of the debtor firm who had assumed the payment of its debts executed, in the name of the firm, a new note, payable to one of the partners of the creditor firm, and took a discharge from him, in the name of his firm, of the original secured indebtedness: Held, that the execution and taking of the new note in lieu of the secured indebtedness were not within the legitimate scope of the business of either firm, nor according to the ordinary course of trade, and were not binding on either of the firms, even though neither the party taking the note nor the firm he represented had ever received actual notice of the dissolution of the firm in whose name the note was executed.</p> <p>4. Same—notice of disso