Power of certain partners to bind firm
9 Power of certain partners to bind firm
A partner in a firm other than an incorporated limited partnership is the agent of the firm, and of the other partners in the firm, for the purposes of the firm’s business.
An act done by a partner in a firm other than an incorporated limited partnership, for carrying on in the usual way business of the kind carried on by the firm, binds the firm and the other partners in the firm unless—
the partner who does the act has in fact no authority to act for the firm in the particular matter; and
the person with whom the partner is dealing either knows that the partner has no authority or does not know or believe the partner to be a partner in the firm.
A general partner in an incorporated limited partnership is the agent of the partnership, and of the other general partners in the partnership, for the purposes of the partnership’s business.
An act done by a general partner in an incorporated limited partnership, for carrying on in the usual way business of the kind carried on by the partnership, binds the partnership and the other general partners in the partnership unless—
the general partner who does the act has in fact no authority to act for the partnership in the particular matter; and
the person with whom the general partner is dealing either knows that the general partner has no authority or does not know or believe the general partner to be a general partner in the partnership.
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