This section is from the book "The Law Of Contracts", by William Herbert Page. Also available from Amazon: Commercial Contracts: A Practical Guide to Deals, Contracts, Agreements and Promises.
Second, the will may confer power to bind the estate by contract;1 as to borrow money to carry on business.2 Power to carry on a plantation,3 to keep an estate together,4 to manage a mine,5 or to raise money,6 or to defer the sale of a business for a. certain time7 each confers power to borrow or create debts. Where power is given to carry on business it has been held that trade debts bind only the money in the business; not the estate in general ;8 and power by will to use the corpus of the property, is not power to borrow.9 However, a power given by will to an executrix "to conduct for such time as she may see fit the business in which I may be engaged at my death," has been held to confer power to subject the entire estate to debts contracted for the purpose of continuing such business.10 A power to the executor to sell is not power to warrant.11
App. 611; 77 Am. St. Rep. 443; 55 N. E. 963; Jackson v. Leech, 113 Mich. 391; 71 N. W. 846. By statute in West Virginia attorney fees are "as binding on the estate as a debt created by the decedent in life - more so." Crim v. England, 46 W. Va. 480, 484; 76. Am. St. Rep. 826; 33 S. E. 310. And giving notes therefor signed as "administrator of the estate" of decedent does not discharge this liability.
11 Wassell v. Armstrong, 35 Ark. 247.
12 Hart v. Allen, 166 Mass. 78; 44 N. E. 116.
13 jelke v. Goldsmith, 52 0. S. 499; 49 Am. St. Rep. 730; 40 N. E. 167.
14 Smith v. Ayer, 101 U. S. 320; Carter v. Bank, 71 Me. 448; 36 Am. Rep. 338; Gottberg v. Bank, 131 N. Y. 595; 30 N. E. 41; Hemmy v. Hawkins. 102 Wis. 56; 72 Am. St. Rep. 863; 78 N. W. 177.
15 Ashby v. Ashby, 7 Barn. & C. 444; Haynes v. Forshaw, 11 Hare 93; Brown v. Farnham, 55 Minn. 27; 56 N. W. 352.
1 Ames v. Holderbaum, 44 Fed. 224.
2 Whitman's Estate, 195 Pa. St. 144; 45 Atl. 673.
3 Primm v. Mensing, 14 Tex. Civ. App. 395; 38 S. W. 382.
4 Brannon v. Ober, 106 Ga. 168; 32 S. E. 16.
5 He may sink a shaft, though it results in loss. Waddell's Estate, 196 Pa. St. 294; 46 Atl. 304.
6 Fletcher v. Banking Co., 1ll Ga. 300; 78 Am. St. Rep. 164; 36 S. E. 767. Under a power by will "to raise a sufficient amount of money for this purpose in such way as seems best to him," he can borrow and give a mortgage, even though the amount thus borrowed exceeds the debts, and can bind the estate by a promise to pay attorney fees. Fletcher v. Banking Co., 1ll Ga. 300; 78 Am. St. Rep. 164; 36 S. E. 767.
 
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