Part 3Relationship of partners to third persons and to each other
Relationship of partners to third persons
18Power of partner to bind firm
An act of a partner (A) binds the firm and A’s partners if the act is done for carrying on in the usual way business of the kind carried on by the firm.
However, this section does not apply if—
- A has no authority to act for the firm in the particular matter; and
- the person with whom A is dealing—
- knows that A has no authority; or
- does not know or believe A to be a partner.
- knows that A has no authority; or
Compare
- 1908 No 139 s 8