Tasmanian Consolidated Acts

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PARTNERSHIP ACT 1891 - SECT 12

Partner using credit of firm or partnership for purpose not connected with business
(1)  Where a partner pledges the credit of a firm, other than an incorporated limited partnership, for a purpose apparently not connected with the firm's ordinary course of business, the firm is not bound unless the partner is in fact specially authorised to do so by the other partners.
(2)  Where a general partner pledges the credit of an incorporated limited partnership for a purpose apparently not connected with the partnership's ordinary course of business, the partnership is not bound unless the general partner is in fact specially authorised to do so by the partnership.
(3)  This section does not affect any personal liability incurred by an individual partner or general partner.



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