St. John Transportation Co., a corporation, made a contract with the partnership of Bilyeu and Herstel, contractors, by which the latter was to construct a ferryboat. Herstel, a member of the firm of contractors, executed a contract in the firm name with Benbow for certain materials and labor in connection with the construction of the ferryboat. In an action brought by Benbow to enforce a lien against the ferryboat, the James Johns, it was contended that all members of the firm were bound by the contract made by Herstel. Do you agree? [Benbow v The Ferryboat James Johns, 108 P 634 (Or)]

Chapter 42 Partnerships 1011 AppendixLO1