Articles 1817-1841
Art. 1817. Any stipulation against the liability laid down in the preceding article shall be void, except as among the partners.
Stipulation eliminating liability.
If there is a stipulation exempting any of the partners from liability to third persons, such stipulation is void as to third person but valid among the partners.
Art. 1818. 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 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 such authority.
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 the other partners.
Except when 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:
(1) Assign the partnership property in trust for creditors or on the assignee’s promise to pay the debts of the partnership;
(2) Dispose of the goodwill of the business;
(3) Do any other act which would make it impossible to carry on the ordinary business of a partnership;
(4) Confess a judgment;
(5) Enter into a compromise concerning a partnership claim or liability;
(6) Submit a partnership claim or liability to arbitration;
(7) Renounce a claim of the partnership.
No act of a partner of contravention of a restriction on authority shall bind the partnership to persons having knowledge of the restriction.
Mutual agency rule.
Each partner is acting as a principal on his own behalf, and as an agent for his co-partners or the firm.
Instances when a partnership is bound.
a.) When he is
Stipulation eliminating liability.
If there is a stipulation exempting any of the partners from liability to third persons, such stipulation is void as to third person but valid among the partners.
Art. 1818. 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 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 such authority.
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 the other partners.
Except when 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:
(1) Assign the partnership property in trust for creditors or on the assignee’s promise to pay the debts of the partnership;
(2) Dispose of the goodwill of the business;
(3) Do any other act which would make it impossible to carry on the ordinary business of a partnership;
(4) Confess a judgment;
(5) Enter into a compromise concerning a partnership claim or liability;
(6) Submit a partnership claim or liability to arbitration;
(7) Renounce a claim of the partnership.
No act of a partner of contravention of a restriction on authority shall bind the partnership to persons having knowledge of the restriction.
Mutual agency rule.
Each partner is acting as a principal on his own behalf, and as an agent for his co-partners or the firm.
Instances when a partnership is bound.
a.) When he is