Dealings with third parties

Abstract

[Extract] Every partner is an agent of the firm and of the other partners for the purposes of the business of the partnership. Subject to certain qualifications, any act done by a partner while carrying on, in the usual way, business of the kind carried on by the partnership, binds the firm and the other partners. This authority to act as an agent of the firm and of the other partners may be negated or qualified by contrary agreement between the partners. However, such an agreement between the partners does not affect dealings with others where a partner acts with the apparent authority of the firm. Conversely, where all the partners authorise a partner to act outside the scope of the partnership business, all the partners will be bound by an act pursuant to the authorisation.