ABSTRACT
Partners will always need to be aware of the existence and scope of their liability, whether under contract, tort, criminal law or otherwise.
5.1 Liability on contracts According to s 5 of the 1890 Act, every partner is an agent of the partnership and the other partners and, therefore, if a partner acts within his authority, those acts legally bind the partnership and the partners. If a partner, for example, enters into a contract which is within his authority, the partnership will be legally bound to that contract and will have to pay for goods or services supplied under it, or supply goods or services itself if that is what the contract says. Whether a partner has been authorised by the other partners to enter into an obligation on behalf of the partnership is a question of fact, but, even if the partner has not been so authorised, his acts may still bind the partnership under s 5 of the 1890 Act.
