Victorian Consolidated Legislation

Partnership Act 1958 - SECT 11

Partner using credit of firm for private purposes

11. Partner using credit of firm for private purposes

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 authorized by the other partners, but this
section does not affect any personal liability incurred by an individual
partner.