(1) Subject to the effect of a statement of partnership authority under section 7-64-303, 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 the partner 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 the partner is dealing has knowledge of the fact that the partner has no such authority.
An act of a partner which is not apparently for the carrying on of the business of thepartnership in the usual way does not bind the partnership unless authorized by the other partners.
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:
Assign the partnership property in trust for creditors or on the assignee's promise topay the debts of the partnership;
Dispose of the goodwill of the business;
Do any other act which would make it impossible to carry on the ordinary business ofthe partnership;
Confess a judgment.
Repealed.
(4) No act of a partner in contravention of a restriction on authority shall bind the partnership to persons having knowledge of the restriction.
Source: L. 31: p. 649, § 9. CSA: C. 123, § 9. CRS 53: § 104-1-9. C.R.S. 1963: § 104-19. L. 75: (3)(e) repealed, p. 578, § 3, effective July 14. L. 2004: (1) amended, p. 1422, § 71, effective July 1.