Meyer v. Hegler

Citations

• 121 Cal. 682
• 54 P. 271
• 1898 Cal. LEXIS 974

Syllabus

<p>Partnership—Note of Partner—Share of Firm Debt—Indorsement by Firm.—The liability of a partnership upon a note of an individual partner given to the firm for his share of the firm’s indebtedness to a bank, one-half of which had been paid by the other partner, and indorsed by the firm to the plaintiff, who advanced the money therefor to the firm, with the understanding that it was to be applied in payment of the remaining indebtedness of the firm to the bank, to which it was in fact applied, is merely that of an indorser, and not that of a principal debtor to the plaintiff for money borrowed.</p> <p>Id.—Payments by Checks in Firm Name. —The payment of installments of interest on such note by checks drawn in the firm name by the maker of the note, or by the bookkeeper, under his direction without the knowledge of the other partner, does not prove that the note was a principal obligation of the firm.</p> <p>Id.—Release of Firm as Indorser—Renewal of Note by Maker—Unauthorized Indorsement.—After release of the firm as indorser of such note, by failure of the holder to make demand upon the maker, and to give notice of nonpayment, upon subsequent renewal of the note by the partner who was the maker thereof, such partner is not authorized to use the name of the firm in an indorsement of the renewed note, and the other partner cannot be held liable thereon.</p>