Guam § 25301 - Partner, Agent of Partnership as to Partnership Business.

§ 25301. Partner, Agent of Partnership as to Partnership Business.

(1) 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.

(2) An act of a partner, which is not apparently for carrying on of the

business of the partnership in the usual way, does not bind the partnership

unless authorized by the other partners.

(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 the partnership.

(d) Confess a judgment.

COL070307

18 GCA BUSINESS S TRUCTURE & FUNCTION

(e) Submit a partnership claim or liability to arbitration or

reference.

(4) No act of a partner in contravention of a restriction on his authority

shall bind the partnership to persons having knowledge of the restrictions.