Stegall v. Coney

Citations

• 49 Miss. 761

Syllabus

<p>1. Partnership — Power of one Partner. — Each partner of a mercantile firm has authority to sell the goods. He may sell the major part or tho entire stock in solido, but such a transaction, being rather unusual, may excite suspicion, and would bind or not the other partners and creditors, as the act may be bona fide, and fair or otherwise. So one partner may make an assignment of personal asseis for the benefit of creditors. Anderson v. Tompkins, 1 Brock, 457. Each partner has the power to do, within the scope of the business, in their dealings with others, what all unitedly might do.</p> <p>2. Same — Same.—If a single partner appropriates the goods or credits of the firm to the payment of his individual debt, this is such a use of Iht-m as is destructive of the joint business, and would not be binding on the other partners ; nor would a right thereby be conferred upon the purchaser or assignee; for either would be cognizant of the unlawful conversion.</p> <p>3. Same. — Effect oe Transfer by Active Partner. — If an active partner dealt with the joint assets, so as to put them beyond the reach of the other 'partners, and deprive them of all profit and benefit thereof, and was assisted in the fraudulent scheme by another, such confederate, to the extent that the property and effects could be traced to him, would be held as trustee.</p> <p>4. Same. — Authority op a Partner. — How Limited. — The authority of a partner is limited to things done in the regular course of the business of tho firm ; outside of this he has no authority. Parsons on Part., p, 163. If he attempts to mortgage or assign under suspicious circumstances, such act would be of no effect as against, the parties injured thereby. A transfer by a partner of the joint effects in fraud of a co-partner will constitute the transferees who received them with notice, or without consideration, a trustee for the benefit of the firm or its creditors. If the joint funds were employed by one partner to purchase pr