§ 23-4-1-9 — Partner as agent

(1) Every partner is an agent of the partnership
for the purpose of its business, and the act of every partner, including
the execution in the partnership name of any instrument, for apparently
carrying on in the usual way the business of the partnership of which
he is a member binds the partnership, unless the partner so acting has
in fact no authority to act for the partnership in the particular matter,
and the person with whom he is dealing has knowledge of the fact that
he has no such authority.
(2) An act of a partner which is not apparently for the carrying on
of the business of the partnership in the usual way does not bind the
partnership unless authorized by the other partners.
(3) Unless authorized by the other partners or unless they have
abandoned the business, one (1) or more but less than all the partners
have no authority to:
(a) Assign the partnership property in trust for creditors or on the
assignee's promise to pay the debts of the partnership,
(b) Dispose of the good will of the business,
(c) Do any other act which would make it impossible to carry on the
ordinary business of a partnership,
(d) Confess a judgment,
(e) Submit a partnership claim or liability to arbitration or reference.
(4) No act of a partner in contravention of a restriction on authority
shall bind the partnership to persons having knowledge of the
restriction.
Formerly: Acts 1949, c.114, s.9.