A member of a trading firm may bind his firm by borrowing money on their behalf,1 especially if the partnership has acquiesced in similar loans on former occasions,2 and giving their note,3 or making drafts for them,4 even if the money thus advanced in good faith is in fact diverted by the borrowing partner.5 So where A indorsed a note for a firm, in good faith, though the proceeds were not applied to the firm's debts, and A had to pay the note, he may recover from the firm.6 A partner may give a chattel mortgage.7 A partner cannot bind the firm by accommodation paper,8 or by a contract of guaranty,9 nor by a note for a debt of their predecessors,10 nor by a note given tor an individual debt in whole,11 or in part,12 even to prevent such creditor from reaching such partner's interest in such firm,13 nor can he give a note in renewal of a debt from which the firm has been released by failure to protest,14 nor can he give a note due at once for debt not yet due.15 Ordinarily he cannot assume debts of others,16 or bind the firm for his own debt,17 and he cannot pay individual debts with firm money,18 or prefer individual debts in assignment,19 or mortgage firm property for an individual debt,20 nor can he bind the firm by a promise to indemnify a surety,21 though he may bind the firm as surety on their own debt.22 Thus he may guarantee a note sold by them,23 or may buy a stock of goods and assume debts against it, in order to secure their own debt,24 or may give a mortgage to secure a firm debt, even though the notes of individual partners were originally given therefor.25 He cannot confess judgment against the firm,26 though as such judgment is voidable only at the election of the partners, a creditor cannot attack it.27 One partner cannot make a general assignment for the benefit of the firm's creditors if the other partners are accessible,28 though he can if they have absconded.29 He cannot mortgage all the property of the firm even for firm debts if the other partners are accessible,30 but he may give a chattel mortgage on all the firm's property in the absence of his partners.31 He cannot execute a sealed instrument on behalf of the firm,32 even if a sealed instrument is negotiable by law in the state in which it is executed,33 but if a seal is not necessary to its validity, it may be rejected as surplusage.34 While a partner in a trading firm has power to sell property of the firm in the general course of the firm's business, he has no power to sell partnership property, the sale of which will make it practically impossible for the firm to continue in business.35 Thus a member of a farming firm cannot sell the live stock and farming implements.36 He cannot sell property of the firm in which it does not deal.37 He can buy and sell such articles as are proper in the exercise of the business of the firm, and the firm is bound by such contract even if other partners have already sold all of such goods on hand.38 He cannot buy, on speculation, articles in which the firm deals regularly.39 A member of a firm of cotton factors cannot make a valid sale of cotton for his firm on speculation.40 He can compromise claims if in good faith,41 but not where the only consideration for such compromise is a personal advantage received by such partner.42 One partner cannot contract for liquidated damages,43 or waive exemptions,44 or bind his partner by representations as to property formerly owned by the firm which has been divided between the partners and has become individual property.45 A member of a firm of real-estate brokers may agree to pay a commission to an agent acting for the firm in making sales,46 or may revoke a contract to give his firm exclusive right to sell realty on commission in a certain time.47 A partner of a firm in the bicycle business may give a note for a rubber and cement business ;48 a partner in a saw mill may contract to return borrowed lumber.49 A partner in a stage line has no power to contract for mining;50 a partner to train and race horses, cannot sell one owned by them as tenants in common,51 and power to reorganize and issue new bonds is not power to change the gauge of the road.52

13 Snively v. Matheson, 12 Wash. 88; 50 Am. St. Rep. 877; 40 Pac. 628.

14 Gray v. Ward, 18 111. 32.

15 Harris v. Baltimore, 73 Md. 22; 25 Am. St. Rep. 565; 8 L. R. A. 677; 17 Atl. 1046; 20 Atl. 1ll, 985.

16 Cocke v. Bank, 3 Ala. 175.

17 Lanier v. McCabe, 2 Fla. 32; 48 Am. Dec. 173.

1 First National Bank v. Grignon, 7 Ida. 646; 65 Pac. 365.

2 Salt Lake City Brewing Co. v. Hawke, 24 Utah 199; 66 Pac. 1058. (A loan by a brewery to a saloon, borrowed to cash miners' checks.)

3 Morris v. Maddox, 97 Ga. 575; 25 S. E. 487; First National Bank v. Grignon, 7 Ida. 646; 65 Pac. 365; Dickson v. Dryden, 97 Ia. 122; 66 N. W. 148; Carter v. Steele, 83 Mo. App. 211.

4 Farmer v. Bank (Ky.), 51 S. W. 586.

5 Dowling v. Bank, 145 U. S. 512; Winship v. Bank, 5 Pet. (U. S.) 529; Sherwood v. Snow, 46 Ia. 481;

26 Am. Rep. 155; Smith v. Collins, 115 Mass. 388; Stimson v. Whitney, 130 Mass. 591; Fuller v. Percival, 126 Mass. 381; Atlas National Bank v. Savery, 127 Mass. 75; 34 Am. Rep. 345; Reed v. Bacon, 175 Mass. 407; 56 N. E. 716; Stevens v. Mc-Lachlan, 120 Mich. 285; 79 N. W. 627; First National Bank v. Morgan, 73 N. Y. 593; Real Estate Investment Co. v. Smith, 162 Pa. St. 441; 29 Atl. 855.

6 Meyran v. Abel, 189 Pa. St. 215; 69 Am. St. Rep. 806; 42 Atl. 122.

7 Morris v. Hubbard, 14 S. D. 525; 86 N. W. 25; Rock v. Collins, 99 Wis. 630; 67 Am. St. Rep. 885; 75 N. W. 426. But in Louisiana a partner must have express authority to execute a mortgage. Kahn v. Becnel, 108 La. 296; 32 So. 444.

8 Union National Bank v. Wick-ham, 18 Ohio C. C. 685; 6 Ohio C. D. 790.

9 Kelley-Goodfellow Shoe Co. v. Lumber Co., 86 Mo. App. 438.

10 Broughton v. Sumner, 80 Mo. App. 386.

11 Terry v. Platt. 1 Perm. (Del.) 185; 40 Atl. 243; Cody v. Bank, 103 Ga. 7S9; 30 S. E. 281; McRae v. Campbell, 101 Ga. 662; 28 S. E. 920; Brobston v. Penniman, 97 Ga. 527; 25 S. E. 350.

12 Hatch v. Reid, 112 Mich. 430; 70 X. W. 889; Huttig, etc., Co. v. McMahon, 81 Mo. App. 440.

13 Durrell v. Staples, 169 Mass. 49; 47 X. E. 441.

14 Meyer v. Hegler, 121 Cal. 682; 54 Pac. 271.

15 McCord Co. v. Callaway, 109 Ga. 796; 35 S. E. 171.

16 Rice v. Jackson, 171 Pa. St. 89; 32 Atl. 1036.

17 Lewin v. Barry, 15 Colo. App. 461; 63 Pac. 121 (for rent); Tal-bott v. Plaster Co., 86 Mo. App. 558; Woolson v. Fuller, 71 Vt. 335; 45 Atl. 753 (for clothes).

18 Columbia National Bank v. Bice, 4S Ncb. 428; 67 N. W. 165;

Brown v. Pettit, 178 Pa. St. 17; 56 Am. St. Rep. 742; 34 L. R. A. 723; 35 Atl. 865.

19 Field v. Romero, 7 N. M. 630; 41 Pac. 517.

20 McCord Co. v. Callaway, 109 Ga. 796; 35 S. E. 171; Johnson v. Shirley, 152 Ind. 453; 53 X. E. 459; Mansur, etc., Co. v. Ritchie, 143 Mo. 587; 45 S. W. 634 (even if all partners concur - but see Buchanan v. Bank (Tenn. Ch. App.), 57 S. W. 207).

21 Seeberger v. Wyman, 108 Ia. 527; 79 N. W. 290.

22 McLaughlin v. Mulloy, 14 Utah 490; 47 Pac. 1031.

23 McNeal v. Gossard, 6 Okla. 363; 50 Pac. 159.

24 National Bank v. Dickinson, 107 Ala. 265; 18 So. 144.

25 West Coast Grocery Co. v. Stin-son, 13 Wash. 255. 43 Pac. 35.

26 Harper v. Cunningham, 8 App. D. C. 430. Contra, Adams v. Leeds Co., 195 Pa. St. 70; 45 Atl. 666.

27 Belcher v. Curtis, 119 Mich. 1; 75 Am. St. Rep. 37G; 77 N. W. 310; McAlpin Co. v. Finsterwald, 57 O. S. 524; 49 N. E. 784.

28 Parker v. Brown, 85 Fed. 595; 29 C. C. A. 357; Mills v. Miller, 109 Ia. 688; 81 N. W. 169; Loeb v. Pier-pont, 58 Ia. 469; 43 Am. Rep. 122; 12 N. W. 544; Shattuck v. Chandler, 40 Kan. 516; 10 Am. St. Rep. 227; 20 Pac. 225; Fox v. Curtis, 176 Pa. St. 52; 34 Atl. 952.

29 Voshmik v. Urquhart, 91 Wis. 513; 65 N. W. 60.

30 McGrath v. Cowen, 57 O. S. 385; 49 N. E. 338; McManus v. Smith, 37 Or. 222; 61 Pac. 844.

31 Beckman v. Noble, 115 Mich. 523; 73 N. W. 803.

32 Milwee v. Jay, 47 S. C. 430;

25 S. E. 298; Waldron v. Hughes, 44 W. Va. 126; 29 S. E. 505.

33 Hull v. Young, 30 S. C. 121; 3 L. R. A. 521; 8 S. E. 695.

34 Waldron v. Hughes, 44 W. Va. 126; 29 S. E. 505.

35 Lowman v. Sheets, 124 Ind. 416; 7 L. R. A. 784; 24 N. E. 351; Hewitt v. Sturdevant, 4 B. Mon.

(Ky.) 453; Cayton v. Hardy, 27 Mo. 536; Phillips v. Thorp, 12 Okla. 617; 73 Pac. 268.

36 Rutherford v. McDonnell, 66 Ark. 448; 51 S. W. 1060. Contra, one partner may sell the entire stock, Hetterman Bros. Co. v. Young (Tenn. Ch. App.), 52 S. W. 532.

37 Pimpton v. Taylor, 11 Ohio O. D. 570.

38 Bass Dry Goods Co. v. Mfg.

Co., 113 Ga. 1142; 39 S. E. 471. 39 Maurin v. Lyon, 69 Minn. 257; 65 Am. St. Rep. 568; 72 X. W. 72.

40 Sparks v. Flannery, 104 Ga. 323; 30 S. E. 823.

41 Walker v. Lumber Co. (Ky.), 35 S. W. 272.

42 Remington v. Ry. Co., 109 Wis. 154; 84 N. W. 898; 85 N. W. 321 (where a fee due to a firm of attorneys was compromised by one of them by accepting employment as attorney at a salary which formed a reasonable compensation for such services). So, Davis v. Dodson, 95 Ga. 718; 51 Am. St. Rep. 108; 29 L. R. A. 496; 22 S. E. 645.

43 Waldron v. Hughes, 44 W. Va. 126; 29 S. E. 505.

44 Guscott v. Roden, 112 Ala. 632; 21 So. 313.

45 Spencer v. Jones, 92 Tex. 516; 71 Am. St. Rep. 870; 50 S. W. 118; reversing, 47 S. W. 29, 665.

46 Boyd v. Watson, 101 Ia. 214; 70 X. W. 120.

47 Harper v. McKinnis, 53 O. S. 434; 42 N. E. 251 (even in order to buy such realty himself).

48 Ketcham National Bank v. Hagen, 164 X. Y. 446; 58 X. E. 523.

49 Forbes v. Morehead (Ky.), 58 S. W. 982.

50 Gutheil v. Gilmer, 23 Utah 84; 63 Pac. 817; Cavanaugh v. Salisbury, 22 Utah 465; 63 Pac. 39.

51 Williams v. Tarn, 131 Cal. 64; 63 Pac. 133.

52 Browning v. Kelley, 124 Ala. 645: 27 So. 391; Modifying on rehearing, 113 Ala. 420; 21 So. 928.