Q&As

What evidence should be sought to ascertain the status and authority of the person signing a deed as a partner on behalf of a general partnership?

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Published on LexisPSL on 04/05/2018

The following Corporate Q&A provides comprehensive and up to date legal information covering:

  • What evidence should be sought to ascertain the status and authority of the person signing a deed as a partner on behalf of a general partnership?

What evidence should be sought to ascertain the status and authority of the person signing a deed as a partner on behalf of a general partnership?

A partner’s authority to act on behalf of a partnership is based on agency. Each partner is an agent of the partnership and the other partners for the purpose of the partnership’s business and can bind it, and them, by any action the partner takes in the ordinary course of the partnership’s business, unless the partner does not, in fact, have the authority to act for the partnership in a particular matter and the person with whom they are dealing is aware of this fact or does not know or believe them to be a partner (section 5 of the Partnership Act 1890 (PA 1890)).

Where a partner purports to act on behalf of the partnership otherwise than in the ordinary course of its business, the other partners will not be bound unless that partner acted on the express authority of the other partners or the act has been subsequently ratified by the other partners.

An act relating to the partnership’s business done in the partnership’s name (or otherwise showing an intention to bind the

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