Chapter IV - Relations of Partners to Third Parties
Section 18
Section 18: Partner to be agent of the firm
For the firm’s business, a partner is an agent of the firm, subject to the Act.
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Need advice on Section 18?
This article is for general information. Refer to the Indian Partnership Act, 1932 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
Subject to the provisions of this Act, a partner is the agent of the firm for the purposes of the business of the firm.
Introduction
Section 18 establishes the basic agency relationship: a partner acts as an agent of the firm for the purposes of its business.
Whether a particular transaction binds the firm also depends on the authority and form rules in the following sections.
Key takeaways
Agency
A partner is an agent for the purposes of firm business.
Scope
The relationship is expressly subject to the other provisions of the Act.
Assess a transaction
Identify the firm’s business and the partner’s act.
Then check implied authority in Section 19, agreed restrictions under Section 20 and the form requirement in Section 22.
Illustration
A partner ordering goods in the ordinary course may act for the firm, but the transaction still requires the applicable authority and execution analysis.
Check deed and state law
Check the partnership deed, the firm’s actual business and any applicable state amendment before deciding what a partner could do as agent.
Practical checklist
Do
- Document who may sign for the firm.
- Check the firm name and capacity shown on contracts.
Avoid
- Do not treat Section 18 alone as unlimited authority for every transaction.
Frequently asked questions
Is a partner always the firm’s agent?
Section 18 makes a partner an agent for purposes of the firm’s business, subject to the Act.
Where is implied authority addressed?
Section 19 sets its ordinary-course test and exclusions.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026