(1) Subject to the limitations set forth in KRS 362.220(2), every partner shall be 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 shall bind 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 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 shall 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 shall 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 goodwill 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.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
Was this helpful?
Response sent, thank you
Welcome to FindLaw's Cases & Codes
A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw's Learn About the Law.