Walsh v. Lennon

Citations

• 98 Ill. 27
• 1881 Ill. LEXIS 222

Syllabus

<p>1. Partnership—acts of one partner as binding upon the firm. One partner has not the power to bind the other members of the firm by deed, without other authority.</p> <p>2. It is, however, within the power of a partner in the mercantile business to borrow money in the name of che firm, and to bind the firm by an agreement to pay interest on the same at any lawful rate, and to sign the firm name to any writing admitting the fact of borrowing and promising to pay, and thereby furnish evidence against the firm and each of its members.</p> <p>3. In assumpsit against the members of a firm, a note under seal, signed in the firm name by one of the partners, reciting that it was given for money borrowed, and promising to pay ten per cent interest, is admissible under the common counts, and a recovery may he had of both principal and interest on producing the note on the trial, to be canceled. In such case the seal adds nothing to the force and effect of the instrument as an admission of the loan, and of the interest agreed to he paid.</p> <p>4. Payment—effect of giving a promissory note. The giving of a promissory note for a pre-existing debt, whether sealed or unsealed, does not pay or discharge the original debt unless it be agreed that the note shall he accepted as payment and satisfaction,—and, in the absence of such an agreement, assumpsit may be maintained for the original debt if the note be produced on the trial to he canceled.</p>