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Sorley and Whyte, by mutual missives, in December, 1788, entered into a copartnership for carrying on a button manufactory, under the firm of Whyte and Company, of which Whyte was to be the sole manager and hirer of the workmen. It was stipulated, that the copartnership should last till the 1st January, 1790, and that Whyte should accept no bills under the company's firm without the express consent of Sorley. Whyte continued to carry on the business, in Edinburgh, as usual, after the 1st of January, though Sorley, who lived at Glasgow, alleged it was without his knowledge; and, on the 6th of March, the latter caused notification to be given, in the Edinburgh newspapers, that the company was dissolved; but, on the 9th January, Whyte had drawn bills, under the company's firm, on Dalgleish and Fleming, which they had accepted, and had given them a letter, obliging the company to relieve them of these acceptances. The acceptors having paid the bills, brought action on this obligation against Sorley, as a partner of Whyte and Company. Urged in defence, That the company was dissolved on the 1st of January. The Lords were of opinion, that a company cannot be dissolved by private stipulation of the partners, without a public notification; and, until that is made, an acting partner has a power to bind the company, notwithstanding any private and latent agreement to the contrary; and they therefore found Sorley liable. See Appendix.
