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Business Associations Keyed to Hwang, 3rd Ed.
National Biscuit Company v. Stroud
Citation:
106 S.E.2d 692 (1959)Facts
C.N. Stroud and Earl Freeman entered into a general partnership operating under the name Stroud’s Food Center to sell groceries. The articles of partnership contained no restrictions on Freeman’s power and authority as a general partner regarding ordinary and legitimate partnership business. The purchase and sale of bread were ordinary and legitimate business activities of Stroud’s Food Center. Several months prior to February 1956, Stroud advised the plaintiff, National Biscuit Company, that he personally would not be responsible for any additional bread sold to Stroud’s Food Center. Despite this notice, Freeman continued to request bread deliveries. From February 6, 1956, to February 25, 1956, at Freeman’s request, National Biscuit Company sold and delivered bread totaling $171.04 to Stroud’s Food Center. The partnership was dissolved by agreement on February 25, 1956, with Stroud receiving most partnership assets and assuming responsibility for liquidating assets and discharging liabilities.
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