Tex. Business Organizations Code § 152.302

This is the official text of Tex. Business Organizations Code § 152.302, part of Texas’s Business Organizations Code — governs the formation and operation of corporations, LLCs, and partnerships.

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§ 152.302. BINDING EFFECT OF PARTNER'S ACTION.

Official statutory text

(a) Unless a partner does not have authority to act for the partnership in a particular matter and the person with whom the partner is dealing knows that the partner lacks authority, an act of a partner, including the execution of an instrument in the partnership name, binds the partnership if the act is apparently for carrying on in the ordinary course:

(1) the partnership business; or

(2) business of the kind carried on by the partnership.

(b) An act of a partner that is not apparently for carrying on in the ordinary course a business described by Subsection (a) binds the partnership only if authorized by the other partners.

(c) A conveyance of real property by a partner on behalf of the partnership not otherwise binding on the partnership binds the partnership if the property has been conveyed by the grantee or a person claiming through the grantee to a holder for value without knowledge that the partner exceeded that partner's authority in making the conveyance.

Status: in_force · Read it on the official government site

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