Part 3Relationship of partners to third persons and to each other
Relationship of partners to third persons
20Partners bound by acts done or instruments executed on behalf of firm
An act or instrument relating to the business of the firm is binding on the firm and all the partners if it is done or executed—
- in the firm’s name or in any other manner that shows an intention to bind the firm; and
- by a person who is authorised to do the act or execute the instrument (whether or not the person is a partner).
However, this section does not affect any general rule of law about the execution of deeds or negotiable instruments.
Compare
- 1908 No 139 s 9