40. Limitations on authority of partners.

If it has been agreed between the partners that any restriction is to be placed on the power of any one or more of them to bind the firm, no act done in contravention of the agreement is binding on the firm with respect to persons having notice of the agreement1. The express or implied authority of a partner cannot, however, be limited by a private arrangement between the partners of which the person dealing with the partner has no notice2, except where the limitation is imposed upon a partner who is not known or believed by that person