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Exception: The partnership is not bound when

the following concur:


(1) The partner has in fact no authority to act;
and
(2) The person with whom he deals has
knowledge of such fact [Art. 1818, par. 1].
ACTS NOT APPARENTLY FOR
CARRYING ON OF THE USUAL
BUSINESS
General rule: Acts of a partner which is not
apparently for carrying on of the usual business
does not bind the partnership.
Exception: The partnership is bound if the other
partners authorized him to do the act [Art. 1818,
par. 2].
ACTS OF STRICT DOMINION
General Rule: One or some of the partners have
no authority to do the following acts of strict
dominion:
(1) Assign the partnership property in trust for
creditors or on the assignee’s promise to
pay the debts of the partnership;
(2) Dispose of the goodwill of the business;
(3) Do any other act which makes it impossible
to carry on the ordinary business of the
partnership;
(4) Confess a judgment;
(5) Enter into a compromise concerning a
partnership claim or liability;
(6) Submit a partnership claim or liability to
arbitration;
(7) Renounce a claim of the partnership.

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