Halacha Overview - Agents and Partners

Note: It should be stressed that the statements in a summary must not be interpreted as halachic rulings no matter how definitively they are worded. When such rulings are needed a qualified rabbi must be consulted.

72. Agents and Partners - Sheluchin ve-Shutafin

Business transactions can be conducted through agents; but if the agent does not fulfill his instructions the transaction is invalid. Legal actions can be conducted only by agents who are authorized in writing. A partner can take legal action on behalf of the entire partnership.a

Partnerships are formed only by an act of mutual sale. One partner can prevent another from conducting a transaction that does not conform to the wishes of the partnership; and if a partner conducts such a transaction he must bear any resulting loss himself. If a partner dies the partnership is dissolved.b

An agent (or guardian) or partner who transacts business is rabbinically required to take an oath that his accounts are correct if they are questioned; and similarly if there is disagreement about the agent's instructions or the terms of the partnership.c

Sources: a. 1:1-2 (and see 2:4); 3:1,3 (and see 5) b. 4:1; 5:2,4,11 c. 9:1,5; 10:1

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