Straw v. Murray, Dougal & Co.
Straw v. Murray, Dougal & Co.
Opinion of the Court
Opinion by
There was no contract, verbal or written, between the plaintiffs and the defendant company for the sale and delivery of logs by the former to the latter, but the plaintiffs had a written contract with Stevenson by which they agreed to sell and deliver logs to him on the terms stated therein, and he had a written contract with the defendant company by winch he sold to it, “to be delivered out of the West Branch Boom during the sea
The liability imposed by the contract is not to the plaintiffs but to Stevenson who has not surrendered any of his rights under it to them. It appears that Stevenson, after the execution of the contract, induced the treasurer of the defendant company to draw and deliver to him two checks of $1,000 each, on the First National Bank of Milton, payable to Straw & Woods or their order. It nowhere appears in the evidence that there was any formal or other authorization by the company of the issuance o£ these checks or of a ratification of it. If they were intended as payments on the company’s contract with Stevenson, or as payments on account of the plaintiffs’ contract with him, it can hardly be contended that the treasurer by virtue of his office was authorized to issue them. If such a power inheres in or is incident to his office he may of his own volition materially change the provisions of the company’s contracts, defining its liabilities and the manner of discharging them, and create liabilities which the company must discharge, and for which no consideration has been received or bargained for. It is quite certain that no such power is vested in any officer or member of a partnership association organized under
The specifications of error are overruled.
Judgment affirmed.
Reference
- Full Case Name
- Isaac Straw and James Woods, trading as Straw & Woods, to use of H. B. Powell, trustee, and Enoch L. Straw v. Murray, Dougal & Company, Limited
- Status
- Published
- Syllabus
- Contract — Privily. Where A agrees to sell logs to B and B subsequently agrees to sell them to C the obligation of C to pay B for the logs imposes no obligation on C to A. Limited partnership associations under act of 1874 — Authority of treasurer —Contracts—Checks. Recovery cannot be had against a'limited partnership association organized under the Act of June 2, 1874, P. L. 271, on checks issued by the treasurer of the association, where it appears that he had no authority to issue the checks; that his act was not subsequently ratified; that the effect of the issuance of the checks was to create a liability against the company new and different from the contract in pursuance of which the checks were alleged to have been given, and the cheeks, although indorsed by the payees, had never in fact been delivered to them, but had been returned to the association and destroyed.