Partner using credit of firm for private purpose
11 Partner using credit of firm for private purpose
If a partner in a firm other than an incorporated limited partnership pledges the credit of the firm for a purpose apparently not connected with the ordinary course of the firm’s business, the firm is not bound unless the partner is in fact specially authorised by the other partners in the firm.
Subsection (1) does not affect a personal liability incurred by an individual partner.
If a general partner in an incorporated limited partnership pledges the credit of the partnership for a purpose apparently not connected with the ordinary course of the partnership’s business, the partnership is not bound unless the general partner is in fact specially authorised by the partnership.
Subsection (3) does not affect a personal liability incurred by an individual general partner.
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