Legal Question in Business Law in California

Re: Signing legal contracts in a joint partnership

Within the partnership, the partners can set up rules about which partners can and cannot do certain things, how many need to sign checks, purchase orders, leases, etc.

However, these internal rules are not generally binding on outsiders, and the signature of any partner is generally sufficient to bind the partnership (and if push comes to shove, make the other partners personally liable to the third party.

This is why general partnerships have become a rather disfavored way of doing business, with liability-limiting alternatives such as LLCs and corporations electing "S" tax treatment.

By the way, it isn't just California - the principle that any partner can bind the partnership to third-party contracts and other liabilities is universal in the English-speaking world, as far as I know.

So, the answer is NO - both partners in a partnership do not have to sign, at least insofar as the external affairs of the partnership go.

However, if X and Y are partners, and X does something he isn't supposed to do without Y's approval or co-signature, then X may be liable to Y for breach of the partnership agreement, but the partnership itself is stuck with the deal X made.