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Partnership Act 1997
18Representation as partner
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18 Representation as partner
(1) A person is liable as a partner in a firm other than an incorporated
limited partnership to a creditor of the firm who provided the credit
because of a representation that the person is that partner.
(2) A person is liable as a general partner in an incorporated limited
partnership to a creditor of the partnership who provided the credit
because of a representation that the person is that general partner.
Part 2 Partnerships generally
Division 2 Relationship of partners to persons dealing with them
Partnership Act 1997 11
(3) Subsection (1) or (2) has effect:
(a) whether or not the representation was made by the person or
with the person's permission or knowledge; and
(b) whether the representation was made orally, in writing or by
conduct.
(4) The estate of a partner in a firm is not liable for any debt incurred by
the firm after the partner's death only because, after the death:
(a) the same firm name continues to be used; or
(b) the partner's name continues to be used in the firm name.
19 Representations about firm's affairs
(1) A representation about a firm's affairs is evidence against the firm if
the representation is made in the ordinary course of the firm's
business by:
(a) if the firm is not an incorporated limited partnership – a partner
in the firm; or
(b) otherwise – a general partner in the firm.
(2) For this section, a representation includes an admission, and may
be made orally, in writing or by conduct.