LawWiki
HomeCodesSearchGlossaryAPIAbout
LawWiki

Plain English summaries of California law with zero-hallucination AI. Every summary is verified against official source text.

Product

  • Search
  • Codes
  • About

Legal

  • Privacy Policy
  • Terms of Service
  • Disclaimer

© 2026 LawWiki. All rights reserved.

HomeCorporations CodeGENERAL PROVISIONSCh. 5Art. 3§ 16301 Partner Authority Binding Partnership

§ 16301 Partner Authority Binding Partnership

Corporations Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 16301 Partner Authority Binding Partnership

This law says that each partner can act for the partnership, and what they do can legally bind the partnership depending on whether it’s normal business and whether they have the right authority.

Key Takeaways

  • •Each partner acts like an agent for the partnership.
  • •If a partner does something that looks like normal partnership business, the partnership is bound unless the other side knew the partner had no authority.
  • •If a partner does something unusual, the partnership is only bound if the other partners gave permission.

Example

Partner A signs a lease for a new office space because the partnership regularly rents offices.

Because signing a lease is normal business for the partnership, the partnership is bound by the lease even if Partner A didn’t get special permission, unless the other party knew Partner A had no authority. If Partner A tried to sell the partnership’s building without the other partners’ okay, the partnership wouldn’t be bound because that isn’t ordinary business.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 16301 Partner Authority Binding Partnership

Subject to the effect of a statement of partnership authority under Section 16303 both of the following apply: (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 knew or had received a notification that the partner lacked authority. (2) An act of a partner that 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 the other partners. (Added by Stats. 1996, Ch. 1003, Sec. 2. Effective January 1, 1997.)

Last verified: January 10, 2026

Key Terms

partneragent of the partnershipordinary course the partnership businessstatement of partnership authority

Related Statutes

  • § 16302 Transferring Partnership Property
  • § 16303 Partnership Authority Statement
  • § 16304 Partner Authority Denial Statement
  • § 16307 Partnership Suits And Judgments
  • § 16309 Service Of Process Agent

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Corporations Code. Section 16301.
View Official Source