48-1-6 - Partner agent of partnership as to partnership business. - Utah Statutes

48-1-6. Partner agent of partnership as to partnership business.
(1) Every partner is an agent of the partnership for the purpose of its business, and the actof every partner, including the execution in the partnership name of any instrument for apparentlycarrying on in the usual way the business of the partnership of which he is a member, binds thepartnership, unless the partner so acting has in fact no authority to act for the partnership in theparticular matter and the person with whom he is dealing has knowledge of the fact that he has nosuch authority.
(2) An act of a partner which is not apparently for the carrying on of the business of thepartnership 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 or more but less than all of the partners have no authority to:
(a) Assign the partnership property in trust for creditors or on the assignee's promise topay 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 ofthe 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 thepartnership to persons having knowledge of the restriction.

No Change Since 1953