§ 16301 Partner Authority Binding Partnership
This law says that each partner can act for the partnership, and what they do can legally bind the partnership depending on whether it’s normal business and whether they have the right authority.
Partner A signs a lease for a new office space because the partnership regularly rents offices.
Because signing a lease is normal business for the partnership, the partnership is bound by the lease even if Partner A didn’t get special permission, unless the other party knew Partner A had no authority. If Partner A tried to sell the partnership’s building without the other partners’ okay, the partnership wouldn’t be bound because that isn’t ordinary business.
AI-generated — May contain errors. Not legal advice. Always verify source.
§ 16301 Partner Authority Binding Partnership
Last verified: January 10, 2026