National Biscuit Company v. Stroud

Stroud (defendant) and Freeman formed a two-person general partnership to sell groceries, with the partnership agreement placing no limits on either partner's authority to conduct ordinary business; despite Stroud telling a National Biscuit Company (NBC) (plaintiff) official he would not be personally liable for bread sold to the partnership, Freeman later ordered more bread on the partnership's behalf, NBC delivered it, and the partnership was dissolved shortly afterward with Stroud refusing to pay. NBC sued the partnership and Stroud, and the trial court found in NBC's favor.