North Star Boot & Shoe Co. v. Stebbins

Citations

• 2 S.D. 74
• 48 N.W. 833
• 1891 S.D. LEXIS 8

Syllabus

<p>1. The general powers of cashiers of banking institutions do not extend to the making of obligations or binding contracts beyond the scope of 'their duties as cashier. They have no right to create new liabilities against the bank of an extraordinary character. Their powers are defined and limited by law, and persons dealing with them are bound to know the extent of them, and with knowledge on their part of the want of authority on the part of a cashier to create a liability outside the general scope of the banking business, a recovery against the bank will not be authorized upon a contract so made.</p> <p>2. Cashiers of banks are held out to the public as having authority to act according to the general usage, practice and course of business conducted by the bank, and their acts, within the scope of such usage, practice, aud course of business, will, in general, bind the bank in favor' of third persons in possession of no other knowledge.</p> <p>3. A purchase of boots and shoes in the name of a bank, by its cashier and general manager, for the benefit of a third person, will not make the bank liable for the amount of the purchase, in the absence of knowledge on the part of the bank of the purchase at the time, or a ratification of it since the purchase; the dealing of merchandise not being within the general usage, practice, or course of business conducted by banking institutions.</p> <p>4. A firm is bound by all representations made by a partner, while acting within the scope of his real or implied authority, and having reference to the business of the firm, but not by statements made outside of the nature of the business which the firm was constituted to transact.</p> <p>5. One partner cannot, by his individual act, bind the firm for the debt of another, without authority specially given him for that purpose, or implied from the common course of business of the firm, unless the act of the partner be afterwards ratified by the other members of the firm. The burd