Relations ofPartners to

PersonsDealing with Partnership

 

§425-112  Partner agent of partnership. Subject to the effect of a partnership registration statement under section425-1:

(1)  Each partner is an agent of the partnership forthe purpose of its business.  An act of a partner, including the execution ofan instrument in the partnership name, for apparently carrying on in theordinary course the partnership business or business of the kind carried on bythe partnership binds the partnership, unless the partner had no authority toact for the partnership in the particular matter and the person with whom thepartner was dealing knew or had received a notification that the partner lackedauthority.

(2)  An act of a partner which is not apparently for carryingon in the ordinary course the partnership business or business of the kindcarried on by the partnership binds the partnership only if the act wasauthorized by the other partners. [L 1999, c 284, pt of §1]