National Biscuit Company v. Stroud
Supreme Court of North Carolina
106 S.E.2d 692 (1959)
Stroud (defendant) and Freeman formed a general partnership to sell groceries. The partnership agreement did not limit either partner’s authority to conduct ordinary business on behalf of the partnership. Several months before the partnership was dissolved, Stroud told a National Biscuit Company (NBC) (plaintiff) official that he would not be personally liable for any bread sold to the partnership. Freeman subsequently ordered more bread on behalf of the partnership, and NBC delivered that bread to the partnership. Shortly thereafter, the partnership was dissolved, and Stroud refused to pay for the bread delivered at Freeman’s behest. NBC sued the partnership and Stroud for the price of the bread. The trial court found in favor of NBC.
Rule of Law
Holding and Reasoning (Parker, J.)
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