832.
Postponement of right of person lending or selling in consideration of share of profits in case of insolvency.
Meaning of "firm" and No. 1 of 1897.
PARTNERSHIP.
the goodwill of the business is not, by reason only of such receipt, a partner in the business or liable as such.
3. In the event of any person to whom money has been advanced by way of loan upon such a contract as is mentioned in the last section, or of any buyer of a goodwill in consideration of a share of the profits of the business, being adjudged a bankrupt, entering into an arrangement to pay his creditors less than 20 shillings in the pound, or dying in insolvent circumstances, the lender of the loan shall not be entitled to recover anything in respect of his loan, and the seller of the goodwill shall not be entitled to recover anything in respect of the share of profits contracted for, until the claims of other creditors of the borrower or buyer for valuable consideration in money or money's worth have been satisfied.
4. Persons who have entered into partnership with one another are called collectively a firm, and the name under which their business is carried on is called the firm-name.
Relations of Partners to Persons dealing with them.
5. Every partner is an agent of the firm and his other partners for the purpose of the business of the partnership; and the acts of every partner who does any act for carrying on in the usual way business of the kind carried on by the firm of which he is a member bind the firm and his partners, unless the partner so acting has in fact no authority to act for the firm in the particular matter, and the person with whom he is dealing either knows that he has no authority or does not know or believe him to be a partner.
6. An act or instrument relating to the business of the firm and done or executed in the firm-name, or in any other manner showing an intention to bind the firm, by any person thereto authorised, whether a partner or not, is binding on the firm and all the partners: Provided that this section shall not affect any general rule of law relating to the execution of deeds or negotiable instruments.
7. Where one partner pledges the credit of the firm for a purpose apparently not connected with the firm's ordinary course of business, the firm is not bound, unless he is in fact specially authorised by the other partners; but this section does not affect personal liability incurred by an individual partner.
* As amended by No. 50 of 1911 and No. 8 of 1912.
* As amended by No. 8 of 1912.
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