Business Associations Keyed to Hamilton
National Biscuit Company v. Stroud
Facts
Stroud (D) and Freeman sold groceries together under a partnership called Stroud’s Food Center of which they apparently had equal right to manage. The National Biscuit Company (P) occasionally sold bread to the partnership. National (P) eventually received notification that Stroud (D) would not be responsible for any more bread sold to the food center. At Freeman’s request however, National (P) delivered an additional $171.04 worth of bread. Stroud (D) and Freeman dissolved their partnership the day of this last delivery. Stroud (D) received most of the partnership’s assets which he liquidated to discharge its liabilities. National (P) never received payment for the bread and sued Stroud (D). Stroud (D) contended that he should have no liability, as his notice denying responsibility for further deliveries relieves him of obligation to pay. The trial court found in favor of National (P). Stroud (D) appealed.
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