12. Upon the principle that the act and assurance of one partner, made with reference to business transacted by the firm, will bind all the partners, the acknowledgment, pro mise, or undertaking of one partner with reference to the contracts of the partnership is held to be the acknowledgment, promise, or undertaking of all. 1 Taunt. 104 ; Story, Partn. 107 ; 1 Esp. 135 ; 1 Russ. & M.199 ; 4 &mew. & Ald. 663 ; 4 Dowl. & R. 7; 1 Salk. 291 ; Collyer, Partn. 422. How far an acknowledgment or admission made by one partner after the dissolution of the firm binds the other partners in regard to partner, ship transactions, see Collyer, Partn. 423 et seq. and notes, 430 and notes.
One partner will be bound by the fraud of his copartner in contracts relating to the affairs of the partnership, made with innocent third persons. Collyer, Partn. 445 ; 2 Barnew. & Ald. 795 ; Cowp. 114 ; 1 Mete. Mass. 563 ; 6 Cow. N. Y. 497 ; 1 Ry. & M. 364 ; 6 Barnew. & C. 561 ; 2 Clark & F. Hou. L. 250 ; 7 T. B. Monr. Ky. 617 ; 1 Campb. 185 ; 7 Ired. No. C. 4 ; 15 Mass. 75, 81, 331 ; 17 id. 182 ; Bisset, Partn. 76. This doctrine proceeds upon the ground that where one of two innocent persons must suffer hy the act of a third person, he shall suffer who has been the cause or the occasion of the confidence and credit reposed in such third person. Story, Partn. 108 ; 1 Metc. Mass. 562, 563. The liability, therefore, does not arise when there is collusion between the fraudulent partners and the party with whom he deals, Bisset, Partn. 80, 81 ; 1 East, 48, 53, or the latter have reason to suppose that the partner is acting on his own account. Peake, 80, 81; Chitty, Contr. 1860 ed. 280, 284 ; 2 C. B. 821; 10 Barnew. Su C. 298.
13. A partner may be made liable for other wrongs committed in reference to the partnership business by his copartners; as, where a partner injures a third person by negligence in driving a coach, the property of the firm and employed on their business. Chitty, Contr. 1860 ed. 280, note ; Collyer, Partn. 458 ; 12 N. H. 276. A joint con version may be raised in point of law by the assent of the partner to the acts of his copart ner. Collyer, Partn. 458 ; 1 Maule & S. 588 , Story, Partn. 166. Demand of, and a refusal by, one partner to deliver up pro perty is evidence of a conversion by both. 4 Hill, N. Y. 13 ; 24 Wend. N. Y. 169 ; 4 Rawle, Penn. 120. But the wilful tort of one partner seems not, in general, to be imputable to the firm. 3 Dowl. 160; 10 Exch. 352.
As a general rule, the act or admission of one partner in legal proceedings, as also no tice to or by one partner, is held to be bind ing on the firm. Collyer, Partn. 441, 442,
443 ; 15 Mass. 44; 2 Wash. C. C. 388 ; 4 Conn. 326 ; 3 Litt. Ky. 250 ; Story, Partn. 107 , 1 Maule & S. 259 ; 5 id. 49 ; 1 Carr. & P. 550 ; 1 Campb. 82 ; 2 Crompt. & M. 318. In an action against partners, one may enter an appearance for the rest, 7 Term, 207 ; 17 Vt. 531 ; see 2 M'Cord, So. C. 310 ; but not to bind them personally and individually when not within the jurisdiction and not served with process. 9 Cush. Mass. 360 ; 11 How. 165. Where one partner released an action after the firm had instructed their attorney to pro ceed to trial, the court refused to interfere, 7 J. B. Moore, 356 ; and it seems that one part ner has also the power of suspending pro ceedings in an action. Bisset, Partn. 75 ; Gow, Partn. 65, note.
14. One partner may give notice of aban donment, under a policy of insurance, for all.
5 Maule & S. 47. Notice of dishonor to one of several partners, joint indorsers of a bill or note, is notice to all. Chitty, Bills, 339 ; 6 La. 684 ; 20 Johns. N. Y. 176. One part ner may act for the others ,in proceedings under bankrupt laws Collyer, Partn. 444; 4 Ves. Ch. 597 ; 19 ic/. 29'1 ; 1 Rose, Bank. 2 ; 2 id. 174; Bisset, Partn. Eng. ed. 76 ; except in the case of a petition for a fiat. Bisset, Partn. 76.
A partner derives no authority from the mere relation of partnership to bind the firm as the guarantor of tbe debt of another, 5 Q. B. 833 ; 4 Exch. 623 ; Col lyer, Partn. 421 ; Chitty, Contr. 1860 ed. 276, 277, and notes; Story, Partn. 127 ; 3 Kent, Comm. 46, 47 ; 3 Ired. No.
C. 241; 2 Harr. N. J. 24 ; 2 Ala. s. 502; 2 Cush. Mass. 309; or as a party to a bill or note for the accommodation of, or as a mere and avowed surety for, another. 2 Cush. Mass. 309 ; Coll yer, Partn. 421 • 19 Johns. N. Y. 154; 1 Wend. N. Y. 531 ; '5 Conn. 574; 21 Miss. 122; 31 Me. 452 ; 3 Huniphr. Tenn. 597 ; 14 Wend. N. Y.133, 138 ; 4 Hill, N. Y. 161. In neither of these cases can the act of one partner bind the firm, unless there be a special authority for the purpose, or one to be implied from the common course of business or the previous course and habit of dealing, with the know ledge and consent of the firm, or unless the transaction is subsequently adopted by the firm. Collyer, Partn. 421 and note ; 3 Kent, Comm. 46, 47 ; Chitty, Contr. 1860 ed. 276, 277 ; 3 Humphr. Tenn. 597 ; 4 Hill, N.