N.Y. PTR Law § 20

§ 20. Partner agent of partnership as to partnership business. 1.\nEvery partner is an agent of the partnership for the purpose of its\nbusiness, and the act of every partner, including the execution in the\npartnership name of any instrument, for apparently carrying on in the\nusual way the business of the partnership of which he is a member binds\nthe partnership, unless the partner so acting has in fact no authority\nto act for the partnership in the particular matter, and the person with\nwhom he is dealing has knowledge of the fact that he has no such\nauthority.\n 2. An act of a partner which is not apparently for the carrying on of\nthe business of the partnership in the usual way does not bind the\npartnership unless authorized by the other partners.\n 3. Unless authorized by the other partners or unless they have\nabandoned the business, one or more but less than all the partners have\nno authority to:\n (a) Assign the partnership property in trust for creditors or on the\nassignee's promise to pay the debts of the partnership.\n (b) Dispose of the good-will of the business.\n (c) Do any other act which would make it impossible to carry on the\nordinary business of the partnership.\n (d) Confess a judgment.\n (e) Submit a partnership claim or liability to arbitration or\nreference.\n 4. No act of a partner in contravention of a restriction on his\nauthority shall bind the partnership to persons having knowledge of the\nrestriction.\n