X and Y are partners.Z is a third party who deals with Y.X will not be liable for an act by Y done in the usual way of business of the kind carried on by the partnership if:

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In a partnership, all partners are generally liable for the actions of any one partner that are done in the usual way of business. However, if a third party (Z) does not know that an individual (Y) is a partner and deals with them in a personal capacity, then the partnership (including X) may not be liable for Y's actions. This is because the third party's dealings were based on the personal credibility of Y, without the assumption of the partnership's backing or authority.

X and Y Are Partners