Opinion ID: 2608934
Heading Depth: 2
Heading Rank: 1

Heading: the partnership agreement

Text: The introductory clause to I.C. § 53-318 provides: 53-318. Rules Determining Rights and Duties of Partners.  The rights and duties of the partners in relation to the partnership shall be determined, subject to any agreement between them, by the following rules... . (Emphasis added.) We read this provision to mean that any agreements made between the partners, pertaining to the rights and duties of the partners in relation to the partnership, are controlling as to the partners and the partnership. The evidence is undisputed that as of January 15, 1976, the partnership agreement involved in these proceedings provided that only the male partners were required to execute documents conveying interest of the partnership. In 1980, the Butlers withdrew as partners. This left David Dykstra and his spouse and the Beckleys as partners in the partnership which owned the partnership property. On February 2, 1981, Dykstra acquired the only other partnership interest remaining, that of the Beckleys. Concurrent with the purchase, at the closing of the conveyance of the Beckley partnership interest to Dykstra and in consideration of that purchase, Dykstra executed and delivered the promissory note and deed of trust, the subject of this action. As of that moment, the only partner required to execute and authorized to execute on behalf of the partnership was David L. Dykstra. The Dykstras were the sole partners in the partnership; and the only evidence concerning the authorization of David Dykstra to execute the documents in question is the affidavit of David Dykstra wherein he affirmatively states that, I was acting as an agent for DB2 ENTERPRISES with the authorization of Jackie K. Dykstra, the remaining partner, and Merle W. Beckley, the withdrawing partner, to execute and encumber the partnership property. There can be no question that this act was authorized by the partnership agreement. There can be no question that the execution and delivery of the note and deed of trust, by the subject of these proceedings, was authorized by the partnership agreement and by the partners therein at the time of the execution and delivery of those instruments.