Page:United States Statutes at Large Volume 76.djvu/686

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PUBLIC LAW 87-709-SEPT. 27, 1962

[76 STAT.

(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 goodwill 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, (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. SEC. 10. CONVEYANCE OF REAL PROPERTY OF THE PARTNERSHIP.—

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(1) Where title to real property is in the partnership name, any partner may convey title to such property by a conveyance executed in the partnership name; but the partnership may recover such property unless the partner's act binds the partnership under the provisions of paragraph (1) of section 9, or unless such property has been conveyed by the grantee or a person claiming through such grantee to a holder for value without knowledge that the partner, in making the conveyance, has exceeded his authority. (2) Where title to real property is in the name of the partnership, a conveyance executed by a partner, in his own name, passes the equitable interest of the partnership, provided the act is one within Hie authority of the partner under the provisions of paragraph (1) of section 9. (3) Where title to real property is in the name of one or more but not all the partners, and the record does not disclose the right of the partnership, the partners in whose name the title stands may convey title to such property, but the partnership may recover such property if the partners' act does not bind the partnership under the provisions of paragraph (1) of section 9, unless the purchaser or his assignee is a holder for value, without knowledge. (4) Where the title to real property is in the name of one or more or all the partners, or in a third person in trust for the partnership, a conveyance executed by a partner in the partnership name, or in his own name, passes the equitable interest of the partnership, provided the act is one within the authority of the partner under the provisions of paragraph (1) of section 9. (5) Where the title to real property is in the names of all the partners a conveyance executed by all the partners passes all their rights in such property. SEC. 11. PARTNERSHIP BOUND BY ADMISSION OF PARTNER.—An admission or representation made by any partner concerning partnership affairs within the scope of his authority as conferred by this Act is evidence against the partnership. SEC. 12. PARTNERSHIP CHARGED W I T H KNOWLEIXJE or OR NOTICE TO

PARTNER.—Notice to any partner of any matter relating to partnership affairs, and the knowledge of the partner acting in the particular matter, acquired while a partner or then present to his mind, and the knowledge of any other partner who reasonably could and should have communicated it to the acting partner, operate as notice to or knowledge of the partnership, except in the case of a fraud on the partnership committed by or with the consent of that partner. SEC. 13. PARTNERSHIP BOUND B PARTNER'S WRONGFUL ACT.—Where, Y

by any wrongful act or omission of any partner acting in the ordinary course of the business of the partnership or with the authority of his copartners, loss or injury is caused to any person, not being a partner

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