5—Power of partner to bind firm
(1) Every partner in a
partnership other than a firm that is a limited partnership or
incorporated limited partnership is an agent of the firm and of the other
partners for the purpose of the business of the partnership; and the acts of
every partner who does any act for carrying on in the usual way business of
the kind carried on by the firm of which the partner is a member bind the firm
and the other partners, unless the partner so acting has in fact no authority
to act for the firm in the particular matter, and the person with whom the
partner is dealing either knows that the partner has no authority, or does not
know or believe the partner to be a partner.
(2) Every
general partner in a limited partnership or incorporated limited partnership
is an agent of the firm and of the other general partners for the purpose of
the business of the partnership, and the acts of every general partner who
does any act for carrying on in the usual way business of the kind carried on
by the firm of which the partner is a member, binds the firm and the other
general partners, unless—
(a) the
general partner so acting has in fact no authority to act for the firm in the
particular matter; and
(b) the
person with whom the general partner is dealing either knows that the
general partner has no authority, or does not know or believe the general
partner to be a general partner.