Etheridge v. Binney

<p>In the case of a limited and dormant partnership carried on by one of the partners in his individual name, if he borrows money, representing it to be for the use of the partnership, the dormant partners will be liable, without proof on the part of the creditor, that the money went to the use of the partnership. Aliter, if he borrows without such a representation.</p> <p>The active partner having conveyed bis own land as security for a partnership debt, and the creditor, after the appointment of one of the dormant partners to settle the partnership concerns, having paid off an incumbrance thereon, being ignorant that there were other incumbrances to the full amount of the land, it was held, that the sum so paid by the creditor should be set off against so much of an account for cash lent by the active partner to the creditor.</p> <p>The active partner having assigned merchandise to a creditor of the partnership as security, with a general power to sell, it was held, that the creditor had authority to sell on credit, and so was not answerable for a loss occasioned by the failure of a person, in good credit at the time of the sale, on whom the purchaser gave the creditor a bill for the price of the goods sold.</p> <p>The active partner having borrowed money on the credit of the firm, promising to re* pay it in a few days, and having refused or become unable to repay it, it was held, that the lender was entitled to interest; at least after a demand; and that calling for and actually taking security, were equivalent to a demand.</p>