South Carolina Code 33-41-310. Partner’s acts and agency; limitation of authority
(2) 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.
Terms Used In South Carolina Code 33-41-310
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
(3) 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
(a) assign the partnership property in trust for creditors or on the assignee’s promise to pay the debts of the partnership,
(b) dispose of the good will of the business,
(c) do any other act which would make it impossible to carry on the ordinary business of a partnership,
(d) confess a judgment or
(e) submit a partnership claim or liability to arbitration or reference.
(4) No act of a partner in contravention of a restriction on authority shall bind the partnership to persons having knowledge of the restriction.