| Commentary

77.1 The statutory agency

| Commentary

(f) Partners’ relationships with outsiders

77 Liability of the firm

77.1 The statutory agency

According to the Partnership Act 1890, every partner is an agent of the firm and his other partners for the purpose of the business of the partnership1. This means that prima facie any transaction with a third party entered into by one of the partners on behalf of the partnership will bind the partnership. This of course causes no problems if the partner was in fact authorised to enter into the transaction on the partnership’s behalf. But what if the partner was not actually authorised and the other

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