9. Power of partners. It may be stated as a general principle, which governs all part nerships in trade, that each individual partner constitutes the others his agents for the pur pose of entering into all contracts for him within the scope of the partnership concern, and, consequently, that he 'is liable to the performance of all such contracts in the same manner as if entered into personally by him self. 6 Bingh. 792; Story, Partn. 1; 20 Miss. 122 ; 10 1\T. H. 16 ; Collyer, Partn. 195 ; Pothier, Partn. c. 5, n. 90; 4 Exch. 623, 630. In truth, the law of partnership is a branch of the law of principal and agent. If two agree that they should carry on a trsde and share the profits of it, each is a principal and each is an agent for the other, and each is bound by the other's contracts in carrying on the trade as much as a single principal would be by the act of an agent who was to give the whole of the profits to his employer. Hence it becomes a test of liability of one for the contract of another, that he is to receive the whole or a part of the profits arising from that contract by virtue of the agreement made at the time of the employment. 23 Bost. Law Rep. 498. If an act is done by one partner on behalf of the firm, and it can be said to have been necessary for the carrying on of the partnership business in the ordi nary way, the firm will prima facie be liable although in point of fact the act was not authorized by the other partners ; but if the act cannot be said to have been necessary for the carrying on of the partnership business in the ordinary way, the firm will primd facie not he liable. 10 Barnew. & C. 128 ; 14 Mees. & W. Exch. 11 ; 4 Exch. 630; 1 Lindley, Partn. 192-195.
10. Each partner has the power to manage the ordinary business of the firm, whatever it may be, and, consequently, to bind his partners, whether they be ostensible, dor mant, actual, or nominal, 7 East, 210 ; 2 Barnew. & Ald. 673 ; 1 Crompt. & J. Exch. 316, by whatever he may do, in the course of such management, as entirely as himself. A partner may, for instance, borrow money, 1 Esp. 406 ; Collyer, Partn. a 390, 391 ; 4 Mete. Mass. 577, purchase goods, Comb. 383 ; 2 Carr. & K. 828 ; 5 Watts & S. Penn. 564, and sell, Godb. 244 ; Cowp. 445 ; 3 Kent, Comm. 44, the whole of the partnership effects at a single sale. 24 Pick. Mass. 89 ; Collyer, Partn. 394 ; 1 Brock, Va. 456 ; 5 Watts, Penn. 22 ; 4 Wash. C. C. 234 ; 1 Harr. Ch. Mich. 2. So he may pledge the partnership goods, Barn. 343 ; 3 Kent, Comm. 46 ; Coll yer, Partn. 396 ; 10.Hare, Ch. 453 ; 5 Exch. 489 ; 7 Mann. & G. 607, even in the case of a particular adventure. Gow. 132, 135, note ; 1 Rose, Bank. 297 ; 4 Barnew. & C. 867. This principle does not extend to the case of a joint-purchase or sub-purchase. 5 Barnew.
Ald. 395. The right of a partner to dispose of the property of the firm extends to assign ments of it as security for antecedent debts, as well as for debts thereafter to be contracted on account of the firm. Story, Partn. 101 ;
5 Cranch, 298 ; 1 Brock, Va. 456 ; 17 Vt.394. The assignment may be for the benefit of one creditor or of several, or of all the joint cre ditors, where all are admitted to an equal par ticipation. Story, Partn. 101 ; 4 Day, Conn. 428 ; 6 Pick. Mass. 360 ; 4 M'Cord, So. C. 519 ; 4 Mas. C. C. 206 ; 5 Watts, Penn, 22 ; 1 Hoff. Ch. N. Y. 511. Whether one partner may, without the express consent of his co partner, assign all the property of the firm to pay the debts of the firm, is a question on which the authorities differ. Collyer, Publ.
395 and notes ; Chitty, Contr. (ed. 1860) 278 ; 4 Wash. C. C. 282 ; 17 Vt. 390 ; 1 Brock, Va. 456 ; 5 Paige, Ch. N. Y. 30, 31 ; 1 Mete. Mass. 515 ; 2 Pick. Mass. 89 ; 5 Watts, Penn. 22 ; 8 Leigh, Va. 416 ; 1 Des. So. C. 537, 540; 3 Sandf. N. Y. 292, 296.
11.. It has been held that one partner may, without the consent or knowledge of his co partners, mortgage all the goods of the firm to secure a particular creditor of the firra.
1 Metc. Mass. 518, 519 ; 7 id. 248. The right of one partner to dispose of the partnership property is, however, confined strictly to per sonal effects, and does not extend to real estate held by the partnership. 1 Metc. Mass. 518, 519 ; Story, Partn. 101 ; 1 Brock, Va. 456, 463.
A partner may draw, accept, and indorse bills, notes, and checks in the name and for the use of the firm, Salk. 126 ; 7 Term, 210 ; 2 Peake, 150 ; 3 Dow. 219 ; Buller, Nisi P.
279 ; 20 Miss. 226 ; 4 Johns. N. Y. 265 ; Story, Partn. 102 ; 5 Blackf. Ind. 210 ; 4 Md. 288 ; and a note or bill executed by one partner in the name of the firm is prima facie evidence that it was executed for partnership purposes. Collyer, Partn. 401, note ; 6 Wend. N. Y. 615 ; 16 Me. 419 ; 5 Mas. C. C. 176 ; 7 Ala. re s. 19. But if a partnership be carried m under a single name, it has been held that the legal presumption in regard to a note signed by that name is that it was a pen sonal and not a partnership note. See 26 Barb. N. Y. 610 ; 38 Me. 506 ; 5 Pick. Mass. 11. One partner may effect insurance, 4 Campb. 66 ; Collyer, Partn. 438 ; Story Partn. 102, and receive money for the firm, Holt, 434 ; Cowp. 814 ; may compromise with its debtors or creditors, Story, Partn. * 115 ; 7 Gill, Md. 49 ; Rice, So. C. 291, and release debts due to it, 3 Kent, Comm. 48 ; Chitty. Contr. 1860 ed. 274 ; Collyer, Partn. 488 and note ; Be.con, Abr. Release (D) ; 3 Bingh. 103 ; 17 Johns. N. Y. 58 ; 7 'N. II. 567 ; 4 Mas. C. C. 232 ; 4 Gill & J. Md. 310 ; 3 Wash. C. C. 511 ; 3 C. B. 742, 745 ; Story, Partn. 115 ; and such acts and dealings, if they fall within the ordinary business of the firm, 6 Beav. Rolls, 324 ; 2 Phill. 354, will bind all the other partners. A warranty of a horse, upon sale thereof by one of several horse-dealers, partners, would bind the others. 2 Barnew. & Ald. 679.