Majority rules for decisions. Some decisions may require the consent of all partners such as any modification in the partnership agreement. A partner has a duty to act loyally to the partnership and unless otherwise agreed, to devote full time to the affairs of the partnership. Each partner is a general agent of the partnership and has the power to enter into binding contracts in the name of the partnership. A partner has express, implied, and apparent authority.
Express authority is power stated in the partnership agreement.
One partner may be given the right to hire and fire employees. Authority to sign contracts to build projects and purchase material. Apparent authority is power that an external party would reasonably assume a person would have because he or she is a partner. A partner may not have express or implied authority to purchase a major piece of equipment but an equipment dealer may reasonably assume that the partner has the authority. Liability of each partner Unlimited liability for the actions of the other partners which occur in the normal performance of business.