Merchants & Farmers Bank v. Johnston

61 S.E. 543, 130 Ga. 661, 1908 Ga. LEXIS 380
Supreme Court of Georgia·Decided May 15, 1908·Published·Cited by 18 cases

Opinion

Holden, J.

(After stating the facts.)

1. An agent acting in behalf of a principal, in the latter’s presence and at his instance, is for the time being the alter ego of the principal, and the agent’s act is in law the act of the principal himself. So, if one person,_ at the request and in the presence of another, execute an instrument in behalf of the latter, the legal effect is the same as though the party authorizing the execution himself held the pen. Ellis v. Francis, 9 Ga. 435 ; Reinhart v. Miller, 22 Ga. 402 (68 Am. D. 506). See also Cunningham v. Lamar, 51 Ga. 574. This rule is not altered by the fact that the instrument executed is one under seal. 2 Bishop on Contracts, §1047. Applying the above rule to the case under consideration, if M. Johnston, at the instance and in the presence of Samuel Evans, signed to the notes sued upon the name of the firm of which Samuel Evans was a,member, these notes have the same legal effect, as obligations of the partnership, as though Samuel Evans himself had affixed the partnership name thereto. Who composed-the firm of Samuel Evans & Company, and whether the signature-of the partnership name to the notes was made under such circumstances as to make it in law the act of Samuel Evans, are, un[664] tier the evidence in the case, questions of fact for determination b.y a jury.

2. The court excluded the notes from evidence, when offered by the plaintiff, because they were under seal. There was no evidence that Kate M. Johnston ratified the signing of the notes, or authorized the signing of them, unless the authority came from, her relation to the partnership. The main question involved in this case is whether or not one partner can bind the partnership by executing a note under seal in the name of the partnership, without .any authority from the other partners except such as comes from the relation of partners. Under our statutes, a member of any partnership can bind it by giving a negotiable promissory note. Selman v. Brown, 78 Ga. 332. It has been held that one * partner can not bind the partnership, in the execution-of a deed to land in the name of the firm. Drumright v. Philpot, 16 Ga. 424 (60 Am. D. 738). A partner derives his power to bind the partnership by reason of being a general agent of the firm. While generally an agent can not bind his principal by an instrument in writing under seal, without authority or ratification from the principal under seal, and while it has been held that one partner can not bind his copartner in the execution of a deed to realty by virtue of the authority he derives from the relation of copartnership, it was held in the ease of Drumright v. Philpot, supra, that “a prior authority, or a subsequent ratification, not under seal, either express or implied, verbal or written, is sufficient to establish the deed as the deed of the firm, and binding upon it as such.” It has been held by our court that one partner can not bind the firm in the execution of a mortgagé on real estate in the name of the partnership (Sullive v. Jones, 61 Ga. 676 ; Turner v. Printup, 65 Ga. 71) ; but it has been held that one partner can bind the firm to a mortgage on personalty. Phillips v. Trowbridge Furniture. Co., 86 Ga. 699 (13 S. E. 19). While it is true that our court has held that one partner can not execute a deed binding the firm, it does not necessarily follow from this that under our statute one partner can not bind the firm in the execution of a negotiable promissory note under seal. In the ease of Straffin v. Newell, T. U. P. Charl. 163 (4 Am. D. 705) it was held: “A charter-party being exclusively a mercantile transaction and always in the course of trade, one partner can therefore bind the [665] other by signature and seal in this species of mercantile contracts.” In delivering the opinion (p. 165) Judge Charlton said: “I bottom mj1- decision upon the broad ground that a charter-party is exclusively a mercantile transaction, and always in the course of trade. . . I mean a deed so inseparably incidental, so closely blended with partnerships and mercantile pursuits, as the contract of charter-party is.” While this authority is not binding, we think the decision is correct.

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Merchants & Farmers Bank v. Johnston, 61 S.E. 543, 130 Ga. 661, 1908 Ga. LEXIS 380 (Ga. 1908).

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