This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 506.— A bill is drawn on a firm doing business at a point where there are no banking facilities, and is sent for collection to the nearest bank. The latter sends the drawee the usual form of power of attorney in favour of its manager, to accept the bill, which is returned with the firm's name signed thereto by one of the partners. Is the acceptance of the bill under this power of attorney binding on the firm?
Answer.—We are inclined to think that a power of attorney, given under the circumstances mentioned in the question, would bind the firm. We are assuming that the bill was drawn for a partnership transaction and that the power of attorney was confined to accepting that bill.