Osgood v. Glover

Citations

• 7 Daly 367

Syllabus

<p>Where a partner in the ordinary course of business insures property represented to the insurer to belong to the firm, and gives in payment of the premium the firm’s promissory note, the other partners are liable on tlmnote, even though the note was given without their consent or knowledge, and in violation of copartnership articles, if there was nothing' in the nature of the transaction notifying the insurer of the latter facts.</p> <p>Where an application was made to an insurance company, through a broker, for insurance, on account of a firm of merchants, on a ship, the loss, if any, payable to the firm, and the company, upon the receipt of the firm’s note signed in the name of the firm by one of the partners, issued a policy upon the ship as the property of the firm,—Held, that the company were not put upon inquiry as to whether or not the firm owned the ship, or whether or not the insurance was a firm transaction, and that the note bound all the partners, whether part owners of the ship or not.</p> <p>It seems, that the rule as to the liability of a partner on a firm note, given without his consent or knowledge, in a transaction not connected with the business of the firm, by another partner, is, that if the party taking the note is notified by the nature of the transaction that it is not connected with partnership matters, the partner, not consenting and having no knowledge is not bound.</p> <p>It seems that a wager policy of insurance, even upon a maritime risk, is void.</p> <p>The authorities as to notes given by a partner in transactions not connected with the business of the firm, collected and discussed by Charles P. Daly, Chief Justice.</p>