§ 7-12-20 Partner agent of partnership asto partnership business. – (a) Every partner is an agent of the partnership for the purpose of itsbusiness, and the act of every partner, including the execution in thepartnership name of any instrument, for apparently carrying on in the usual waythe business of the partnership of which he or she is a member, binds thepartnership, unless the partner so acting has in fact no authority to act forthe partnership in the particular matter, and the person with whom he or she isdealing has knowledge of the fact that he or she has no authority.
(b) An act of a partner which is not apparently for thecarrying on of the business of the partnership in the usual way does not bindthe partnership unless authorized by the other partners.
(c) Unless authorized by the other partners or unless theyhave abandoned the business, one or more but less than all the partners have noauthority to:
(1) Assign the partnership property in trust for creditors oron the assignee's promise to pay the debts of the partnership;
(2) Dispose of the good will of the business;
(3) Do any other act which would make it impossible to carryon the ordinary business of a partnership;
(4) Confess a judgment;
(5) Submit a partnership claim or liability to arbitration orreference.
(d) No act of a partner in contravention of a restriction onauthority shall bind the partnership to persons having knowledge of therestriction.
§ 7-12-20 Partner agent of partnership asto partnership business. – (a) Every partner is an agent of the partnership for the purpose of itsbusiness, and the act of every partner, including the execution in thepartnership name of any instrument, for apparently carrying on in the usual waythe business of the partnership of which he or she is a member, binds thepartnership, unless the partner so acting has in fact no authority to act forthe partnership in the particular matter, and the person with whom he or she isdealing has knowledge of the fact that he or she has no authority.
(b) An act of a partner which is not apparently for thecarrying on of the business of the partnership in the usual way does not bindthe partnership unless authorized by the other partners.
(c) Unless authorized by the other partners or unless theyhave abandoned the business, one or more but less than all the partners have noauthority to:
(1) Assign the partnership property in trust for creditors oron the assignee's promise to pay the debts of the partnership;
(2) Dispose of the good will of the business;
(3) Do any other act which would make it impossible to carryon the ordinary business of a partnership;
(4) Confess a judgment;
(5) Submit a partnership claim or liability to arbitration orreference.
(d) No act of a partner in contravention of a restriction onauthority shall bind the partnership to persons having knowledge of therestriction.
§ 7-12-20 Partner agent of partnership asto partnership business. – (a) Every partner is an agent of the partnership for the purpose of itsbusiness, and the act of every partner, including the execution in thepartnership name of any instrument, for apparently carrying on in the usual waythe business of the partnership of which he or she is a member, binds thepartnership, unless the partner so acting has in fact no authority to act forthe partnership in the particular matter, and the person with whom he or she isdealing has knowledge of the fact that he or she has no authority.
(b) An act of a partner which is not apparently for thecarrying on of the business of the partnership in the usual way does not bindthe partnership unless authorized by the other partners.
(c) Unless authorized by the other partners or unless theyhave abandoned the business, one or more but less than all the partners have noauthority to:
(1) Assign the partnership property in trust for creditors oron the assignee's promise to pay the debts of the partnership;
(2) Dispose of the good will of the business;
(3) Do any other act which would make it impossible to carryon the ordinary business of a partnership;
(4) Confess a judgment;
(5) Submit a partnership claim or liability to arbitration orreference.
(d) No act of a partner in contravention of a restriction onauthority shall bind the partnership to persons having knowledge of therestriction.
