The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1902-10-23
MACON IS
The WINNER
Gear Reversed in
Hagey Cure
Case.
NEW TRIAL MUST
NOW BE HELD
Partners of Harrison Held Not TO
be Liable for Amount Put
in by Him.

The Supreme Court rendered an opin-
ion yesterday morning reversing Judge
Gear in the Hagey Gold cure case and
ordering new trial.
The title of the suit is T. NJ. Harrison
vs. J. A. Magoon, ct al, and jury
found for the plaintiff, awarding judg-
n1ent for about $4,000. The Supreme
Court orders new trial because of re-
fusal on Judge Gears part to give an
instruction asked by defendant.
The syllabus of the decision is as fol-
lows:
A partner may represent and bind
the partnership and its other members
in matters within the scope of the part
nership business.
A partnership was formed for the
purpose of engaging in the business of
administering the formulas known as
the Hagey Gold Cure, and in the es-
Enlistment and disposition of Insti-
tutes for the purpose of administering
said formulas" The articles also con-
tanned clauses prohibiting any of the
partners from creating any liability on
behalf of the company, providing for
the contribution by the partners TO a
fund for the establishment and main
tenance of Institutes, and reciting that
the members would not be bound for
any debts and obligations incurred
otherwise Held, that assuming that 1t
was within the power of partner to
sell or dispose of the right to establish
and conduct Institutes in certain por-
tions of the field owned by the partner
ship, nevertheless no partner as such
had authority, in making such sale,
to bind the other partners by contract
to guarantee to the extent of $4,000
satisfaction with the Hagey business
and thus create a liability to pay that
amount in case of dissatisfaction.
A partner has no authority as such
to form a new partnership to include
within it's membership the original
partnership or it's members.
A power of attorney authorized the
agent to act for the principal in all
matters connected with the A. P. & l.
H. Co. and for that purpose to establish
institutes and to sell the medicines COM
pounded under the formulas belonging
to the company; to sell and dispose of
the said formulas in the district where
he may be operating; and to do and
perform all other acts and things that
may be necessary and proper in the
prosecution of the business of the said
company" Held, that no authority was
by this instrument granted to the agent
to form a new partnership including
within it's membership the original as
ISOLATION or its members.
General words in power of attorney
must be construed with reference to
the specified objects. to be accomplish
! ed
Where a principal accepts the benefits
of an unauthorized act of an agent with
knowledge. actual or constructive, of all
the material facts, he is deemed to have
ratified the act and is bound thereby:
but if. the acceptance be in ignorance
or under misrepresentation of any of the
essential circumstances relating to the
transaction. this viii absolve the prin-
cipal from all liability by reason of any
SUPPOSED assent to the previously I'M
authorized act of the agent.
A cancellation of one agreement is
good consideration for the execution of
another.
1t is a sufficient consideration for an
agreement that the party claiming a
benefit Hereunder caused TO be execut-
ed a release of an encumbrance stand
ing against the property of the other
party