NM Stat § 54-1A-301 (2021)
2021 New Mexico Statutes|Chapter 54 - Partnerships|Article 1A - Uniform Partnerships|Article 3 - Relations of Partners to Persons Dealing with Partnership.|Section 54-1A-301 - Partner agent of partnership.

Subject to the effect of a statement of partnership authority under Section 303 [54-1A-303 NMSA 1978]: (1) each partner is an agent of the partnership for the purpose of its business. An act of a partner, including the execution of an instrument in the partnership name, for apparently carrying on in the ordinary course the partnership business or business of the kind carried on by the partnership binds the partnership, unless the partner had no authority to act for the partnership in the particular matter and the person with whom the partner was dealing knew or had received a notification that the partner lacked authority; and (2) an act of a partner which is not apparently for carrying on in the ordinary course the partnership business or business of the kind carried on by the partnership binds the partnership only if the act was authorized by the other partners. History: Laws 1996, ch. 53, § 301. ANNOTATIONSPartner not to bring partnership suit alone. — Although a partner is a general agent of the partnership, a partner may not sue alone on a cause of action belonging to a partnership; instead, the action must be brought in the names of all the partners. Daniels Ins., Inc. v. Daon Corp., 1987-NMCA-110, 106 N.M. 328, 742 P.2d 540. Individual partner settling claim not usual to the business. — While a partner acting within his or her actual authority may execute a valid release of a partnership claim, it is questionable whether there could be implied actual authority or apparent authority for a partner to settle any part of a partnership claim that was not usual to the business. Of course, an individual partner may release personal claims based upon damage to personal property and interests. First Nat'l Bank v. Sanchez, 1991-NMSC-065, 112 N.M. 317, 815 P.2d 613. Partnership as customer of bank. — The relationship between a bank and its depositor is a contractual relationship of debtor and creditor and a partnership can enter into the contractual relationship of debtor and creditor, as a customer of the bank, in accordance with the express provisions of the Uniform Commercial Code. Loucks v. Albuquerque Nat'l Bank, 1966-NMSC-176, 76 N.M. 735, 418 P.2d 191. No note liability. — The partnership is not liable on a note executed by one partner in an individual's name, even though the note execution was for partnership purposes. Loucks v. Albuquerque Nat'l Bank, 1966-NMSC-176, 76 N.M. 735, 418 P.2d 191. Partnership bound by land purchase agreement. — When a partner, authorized to act for the partnership, enters into a purchase agreement for land, and the partner acted on the partnership's account in the usual way, even though the partner's actions in this particular transaction were without the consent of one of the other partners, the partnership is bound by the agreement. Dotson v. Grice, 1982-NMSC-072, 98 N.M. 207, 647 P.2d 409. Conversion of partnership property dismissed with prejudice. — When a partner sought possession of certain disputed property, purchased by the partnership, without the consent of the partners and for other than partnership purposes, that partner's conversion claim against the seller, seeking individual damages, was properly dismissed with prejudice. Stephen v. Phillips, 1984-NMCA-098, 101 N.M. 790, 689 P.2d 939. Law reviews. — For note, "Commercial Law - The New Mexico Supreme Court Answers a Moot Question of Partnership Law: First National Bank in Albuquerque v. Sanchez," see 23 N.M.L. Rev. 251 (1993). For comment on Loucks v. Albuquerque Nat'l Bank, 76 N.M. 735, 418 P.2d 191 (1966), see 8 Nat. Resources J. 169 (1968). Am. Jur. 2d, A.L.R. and C.J.S. references. — 6 Am. Jur. 2d Assignment for Benefit of Creditors § 13; 59A Am. Jur. 2d Partnership § 247 et seq. Personal liability to other party to contract of member of firm who, without authority, attempts to bind a firm, 4 A.L.R. 258. Power of partner to dispose of good will of business, 5 A.L.R. 1182. Authority of member of farming partnership to execute negotiable paper, 9 A.L.R. 372. Power of partner to bind firm by bonus agreement, 49 A.L.R. 1315. Right of one who accepts firm assets or obligation upon account of an individual indebtedness of, or transaction with, a partner, 50 A.L.R. 432. Admission of partner as to past transactions or events as evidence against firm or other partner, 73 A.L.R. 447. Discharge or settlement by, or payment to, one partner as affecting rights of others, 142 A.L.R. 371. Agency conferred upon partner as affected by dissolution of partnership, 170 A.L.R. 512. Duty of former partner, acquiring property occupied by partnership business, to renew lease, 4 A.L.R.2d 102. Powers and duties of managing partner of mining partnership, 24 A.L.R.2d 1359. Authority of agent to borrow money for principal, 55 A.L.R.2d 1215. 68 C.J.S. Partnership §§ 136, 139.