SECTION 23

EFFECT OF ADMISSIONS BY A PARTNER (SECTION 23)
According to section 23, an admission or representation made by a partner concerning the affairs of the firm is evidence against the firm, if it is made in the ordinary course of business. 

Analysis of section 23:
Partners, as agents of each other can make binding admissions but only in relation to partnership transaction and in the ordinary course of business. An admission or representation by a partner will not however, bind the firm if his authority on the point is limited and the other party knows of the restriction. The section speaks of admissions and representations being evidenced against the firm. That is to say, they will auect the firm when tendered by third parties; they may not have the same euect in case of disputes between the partners themselves.

Example: 

X and Y are partners in a firm dealing in spare parts of diuerent brands of motorcycle bikes. Z purchases a spare part for his Yamaha motorcycle after being told by X that the spare part is suitable for his motorcycle. Y is ignorant about this transaction. The spare part proves to be unsuitable for the motorcycle and it is damaged. X and Y both are responsible to Z for his loss.