134. Partner's power to mortgage otherwise than by deed.

(iii)     Partnerships

134.     Partner's power to mortgage otherwise than by deed.

A partner1 has an implied authority to pledge or mortgage, otherwise than by deed, the personal property belonging to the partnership, and probably also the real estate2 if dealing in it is one of the objectives of the partnership, in order to raise money for the carrying on in the usual way of the partnership business, unless the partner so pledging or mortgaging has in fact no authority so to act for the firm, and the person with whom he is dealing either knows that he has