Negotiable Instruments — Apparent Authority
Mr. Smith was the principal owner of Smith Ltd., a truck dealership. He owned several other businesses in which his wife was also involved as a manager. Mr. Beaulieu later assumed the operations position with Smith Ltd. and entered into a new venture called Beaulieu and Smith. Mr. Smith’s wife arranged for the payment of the premiums with the insurance broker and Mr. Smith also wrote and arranged for payment for one of his related companies. Mr. Smith’s wife, who was a co-signer with Mr. Beaulieu, kept the chequebooks. The new business venture failed and the trucks were repossessed.
Question: Who was held responsible to pay for the balances on premium owed?
Answer: All three were found jointly liable. Mr. & Mrs. Smith and Mr. Beaulieu were partners in the business venture called “Beaulieu and Smith.”
Tip (Legal Advice): What to do — What or How to avoid the problem:
Every partner is an agent of the firm or business and his other partners. For the purpose of the business of the partnership, the acts of every partner who does any act bind the firm and all his partners.
“Before entering in any venture or partnership with someone, make sure that the person(s) with whom you are dealing with is worthy of being your partner(s).”
Safety Insurance Services (Atlantic) Ltd. v. Walker
(1991) N.B.R. No. 1025
New Brunswick Court of Queens Bench
Trial Division – Judicial District of Woodstock
Judgement: November 26, 1991