[§425-112] Partnership charged with knowledge of or notice to partner. [Repealed July 1, 2000. For new provision, see below.] Notice to any partner of any matter relating to partnership affairs, and the knowledge of the partner acting in the particular matter, acquired while a partner or then present to his mind, and the knowledge of any other partner who reasonably could and should have communicated it to the acting partner, operate as notice to or knowledge of the partnership, except in the case of a fraud on the partnership committed by or with the consent of that partner. [L 1972, c 17, §12]
RELATIONS OF PARTNERS TO
PERSONS DEALING WITH PARTNERSHIP
§425-112 Partner agent of partnership. [Section effective July 1, 2000. For present provision, see above.] Subject to the effect of a partnership registration statement under section 425-1:
(1) Each partner is an agent of the partnership for the purpose of its business. An act of a partner, including the execution of an instrument in the partnership name, for apparently carrying on in the ordinary course the partnership business or business of the kind carried on by the partnership binds the partnership, unless the partner had no authority to act for the partnership in the particular matter and the person with whom the partner was dealing knew or had received a notification that the partner lacked authority.
(2) An act of a partner which is not apparently for carrying on in the ordinary course the partnership business or business of the kind carried on by the partnership binds the partnership only if the act was authorized by the other partners. [L 1999, c 284, pt of §1]