Partners have the implied authority to bind the partnership by contracts of surety for any and all purposes.

Question

Quizplus · Accepted Answer

The implied authority of partners in a partnership includes the power to enter into contracts of surety for the partnership, which means they can bind the partnership to guarantee debts or obligations of third parties. This authority is implied because it is a natural part of the partnership relationship and is necessary for the usual conduct of partnership business. However, the actual authority of partners may be restricted by the partnership agreement or by specific instructions from the other partners.

Partners Have the Implied Authority to Bind the Partnership by Contracts