Commentary

77.3 Drafting partnership agreement clauses regarding unauthorised dealings

BUSINESSES vol 4(2) start-up, sale and purchase
| Commentary

77.3 Drafting partnership agreement clauses regarding unauthorised dealings

| Commentary

77.3 Drafting partnership agreement clauses regarding unauthorised dealings

The starting point in minimising the problem of unauthorised dealings is to ensure that the partnership agreement contains very clear provisions as to which partners have authority to make which decisions. This obviously includes which partners have authority to enter into contracts with outsiders. This should prevent partners making genuine mistakes as to the ambit of their authority.

It must be recognised, however, that restrictions on authority within the partnership agreement will very rarely have any effect on the rights of an outsider against the partnership as the outsider is unlikely to have

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