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Partner as an Agent of a Partnership

Under both the UPA and the RUPA, all partners serve as general agents of the partnership. Accordingly, partners may bind the partnership through their actions. They often have the actual authority to conduct partnership business, though the extent of this authority often focuses on the language included in a partnership agreement. Authority may be implied through the action or inaction of other partners in the management of the business. For example, if one partner has entered into contracts on behalf of the partnership in the past, and none of the partners has objected (assuming they have knowledge of the transaction), the partner most likely has implied authority to enter into the contract.

Inside Partner as an Agent of a Partnership