Section 10-8-49

(Repealed effective January 1, 2001) Partners as agents of partnership.

(a) 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 partners, 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.

(b) 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 all the partners.

(c) Unless authorized by the other partners or unless they have abandoned the business, one or more but less than all the partners have no authority to do any act that would make impossible the continuance of the ordinary business of the partnership, including the disposition of the whole of the partnership property at once, assignment of the partnership property for benefit of creditors or disposition of the goodwill of the business.

(d) No act of a partner in contravention of a restriction on authority shall bind the partnership to persons having knowledge of the restriction.

(Acts 1971, No. 1513, p. 2609, §9.)