Partners bound by acts on behalf of firm – PA 1890 s. 6
An authorised person's act in the firm's name or with intent to bind binds the firm and all partners (PA 1890 s. 6). Excludes deeds and negotiable instruments.
An act or instrument relating to the business of the firm 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.
Text in force at .
Source: legislation.gov.uk — The National Archives (legislation.gov.uk), reproduced under licence Open Government Licence v3.0.
What it actually says
This section says that if someone who is authorised to act for the partnership does an act or makes a document in the partnership's name, or in a way that shows they intend to bind the partnership, and that act relates to the partnership's business, then the partnership and every partner are legally bound by it. The person does not have to be a partner; an employee or agent can also bind the firm if authorised.
However, this rule does not change the law about deeds (documents under seal) or negotiable instruments (like cheques or promissory notes). Those require specific formalities and are governed by other rules, not this section.
When it applies
- A partner signs a contract for the supply of raw materials in the firm's name.
- An employee of the partnership sends a purchase order for office equipment on the firm's letterhead.
- A partner negotiates a lease for business premises and signs the lease agreement in the firm's name.
- A partner hires a new employee, signing an employment agreement in the firm's name.
- A partner accepts a bid for a construction project, signing a letter of intent on behalf of the firm.
What this section does not say
- Acts by a partner that are not related to the firm's business (e.g., a partner buying a personal car in the firm's name) – those are covered by other rules like PA 1890 s. 7.
- Acts by an unauthorised person, even if done in the firm's name – this section requires authorisation.
- Execution of deeds or negotiable instruments – this section does not affect the general rules on those (e.g., deeds must be signed and witnessed).
- The idea that only partners can bind the firm – this section also applies to any authorised person, whether partner or not.
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This page reproduces the text of PA 1890 s. 6 in force at the date shown and explains it in general terms. It is not legal advice and takes no account of the circumstances of your case, which can change the answer completely. For a live dispute, for limitation periods, and before taking any step in court, consult a qualified lawyer in England and Wales.