Chapter V - Extent and Limitation of Liability of Limited Liability Partnership and Partners
Section 26
Section 26: partner as agent
A partner acts as agent of the LLP for its business, but is not another partner's agent merely by being a partner.
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Need advice on Section 26?
This article is for general information. Refer to the Limited Liability Partnership Act, 2008 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
Every partner of a limited liability partnership is, for the purpose of the business of the limited liability partnership, the agent of the limited liability partnership, but not of other partners.
Key takeaways
Core rule
A partner acts as agent of the LLP for its business, but is not another partner's agent merely by being a partner.
Practical step
Confirm the dealing concerns LLP business
How the section operates
A partner acts as agent of the LLP for its business, but is not another partner's agent merely by being a partner.
Practical steps
Confirm the dealing concerns LLP business; identify the partner's authority; preserve the transaction record.
Practical preparation
Review these items against the Act and LLP records.
- Confirm the dealing concerns LLP business
- Identify the partner's authority
- Preserve the transaction record.
Practical checklist
Do
- Confirm the dealing concerns LLP business
- Identify the partner's authority
- Preserve the transaction record.
Avoid
- Do not assume LLP status alone settles liability without applying the section's stated conditions.
Illustrative example
Hypothetical: partner as agent
Field LLP partner signs a supply agreement for LLP business.
Step 1
Check the partner's authority
Step 2
Identify the LLP as principal
Step 3
Document the transaction.
Outcome
- Section 26 identifies the LLP, rather than the other partners, as the principal for LLP business.
Glossary
- agent
- A person whose acts can be attributed to a principal under the applicable law.
Frequently asked questions
What does section 26 provide?
A partner acts as agent of the LLP for its business, but is not another partner's agent merely by being a partner.
What should be checked?
Confirm the dealing concerns LLP business; identify the partner's authority; preserve the transaction record.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026