This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 500.— Are the acts of an attorney under a power signed by one member of a firm binding on the other members, or should all sign it?
Answer.—A power of attorney signed by one partner is binding upon the rest in so far as the matters included in it are within the scope of the partnership, and to this extent it need not be signed by the other partners. We should say that it would be a prudent act on the part of the bank to require all to sign, but this is a matter of prudence, not of law.
Power of Attorney Given on Behalf of a Firm by One of the Partners.
An esteemed subscriber has called our attention to the fact that as worded the previous answer might be construed to mean that whatever a partner might himself do on behalf of the firm, an attorney appointed by him might also do— from which meaning he very properly dissents. Our answer was intended to mean that the acts of an attorney appointed by one partner would be binding on the firm with respect to such matters as, under the scope of the partnership, one partner would have the right to do through an attorney, either by express authority in the articles of partnership, or by necessary implication from the nature of the transaction itself; but the acts of an attorney appointed by one partner would not otherwise bind the firm if the other partners objected. In order that the bank might not have to take any risks as to the scope of the partnership we added to the answer the advice to require all to sign.