Page 431 - Important Provisions of The New Civil Code

Article 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 business of the partnership in

the usual way does not bind the partnership

unless authorized by the other partners.