A partnership is a proper promissor in a contract of suretyship, provided the contract comes within the scope of the business of the partnership, or is expressly joined in, by all the members of the partnership firm for a partnership purpose. Where the contract is not within the scope of the firm's business, one partner has no implied power to bind the firm.9 But the firm itself may change the scope of the business. A partner acting without express or implied authority would bind himself alone.

A corporation's right to become a surety is regulated by the powers granted to it in the charter, or where the making of the contract would be necessary to properly carry out the express purposes of its creation.10 The power of a state or national bank to act as surety is regulated by the language of the statute under which they are organized. Under the National Banking Act, there is given the implied power to National Banks to act as a surety, whenever it becomes necessary for the bank to so act in negotiating its paper.11

8 Lee vs. Yandell, 69 Texas, 34.

9 Osborn vs. Stone, 30 Minn., 25;

Avery vs. Rowell, 59 Miss., 82.

10 Arnot vs. Erie Ry. Co., 67 N. Y., 315. 11 Peoples Bank vs. National Bank, 101 U. S., 183.