Who has the authority to bind all partners in a contract within a partnership?

In a partnership, any partner can bind the partnership in a contract as long as they are acting within the scope of their authority. This principle is grounded in the basic understanding that partnerships operate on mutual agency. Each partner is authorized to act on behalf of the partnership, which means that individual partners can enter into agreements that will legally commit the entire partnership, provided their actions are within the limits of the authority granted to them under the partnership agreement or customary business practices.

For a binding contract to hold, what is critical is that the actions taken by the partner are within the authority given to them, either explicitly through partnership agreements or implicitly through the nature of the business operations. This empowers partners to engage in business transactions efficiently without needing unanimous consent for every decision, which could impede business operations significantly.

In contrast, the other options imply restrictions or limitations that do not reflect the general legal framework governing partnerships. For example, the idea that only a senior partner can bind the partnership does not align with partnership law unless such authority is specifically designated in the partnership agreement. Similarly, a designated representative would only have authority as established by the partnership itself, not as a blanket rule applicable in all cases. Finally, the notion that all contracts must be unanimous contradicts the fundamental agency