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Partnership Act 1997
9Partner's power to bind firm
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9 Partner's power to bind firm
(1) A partner in a firm other than an incorporated limited partnership is,
for the firm's business, an agent of the firm and of the firm's other
partners.
Part 2 Partnerships generally
Division 2 Relationship of partners to persons dealing with them
Partnership Act 1997 6
(2) An act of the partner in carrying on in the usual way business of the
kind carried on by the firm binds the firm and all its partners, unless:
(a) the partner had no authority to act in the matter; and
(b) the person with whom the partner is dealing:
(i) knew the partner did not have that authority; or
(ii) did not know or believe the partner was a partner in the
firm.
(3) A general partner in an incorporated limited partnership is, for the
firm's business, an agent of the firm and of the firm's other general
partners.
(4) An act of the general partner in carrying on in the usual way
business of the kind carried on by the partnership binds the
partnership and all its other general partners, unless:
(a) the general partner had no authority to act in the matter; and
(b) the person with whom the general partner is dealing:
(i) knew the general partner did not have that authority; or
(ii) did not know or believe the general partner was a
general partner in the partnership.