Subject to the effect of a statement of partnership authority under KRS § 362.1-303:
(1) Each partner is an agent of the partnership for the purpose of its business. An act of a partner, including the execution of an instrument in the partnership name, for apparently carrying on in the ordinary course the partnership business or business of the kind carried on by the partnership binds the partnership, unless the partner had no authority to act for the partnership in the particular matter and the person with whom the partner was dealing had notice that the partner lacked authority.

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Terms Used In Kentucky Statutes 362.1-301

  • Business: includes every trade, occupation, and profession. See Kentucky Statutes 362.1-101
  • 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.
  • Partnership: means an association of two (2) or more persons to carry on as co- owners a business for profit formed under KRS §. See Kentucky Statutes 362.1-101
  • Person: means an individual, an entity, or any other legal or commercial entity. See Kentucky Statutes 362.1-101
  • Statement: means a statement of partnership authority under KRS §. See Kentucky Statutes 362.1-101

(2) An act of a partner which is not apparently for carrying on in the ordinary course the partnership business or business of the kind carried on by the partnership binds the partnership only if the act was authorized by all of the other partners.
Effective: July 12, 2006
History: Created 2006 Ky. Acts ch. 149, sec. 28, effective July 12, 2006.