UPA Section 10 covers only real property. Section 302, however, also governs the transfer of partnership personal property acquired by instrument and held in the name of the partnership or one or more of the partners.

3. Subsection (b) deals with the right of the partnership to recover partnership property transferred by a partner without authority. Subsection (b)(1) deals with the recovery of property held in either the name of the partnership or the name of one or more of the partners with an indication of their capacity as partners or of the existence of a partnership, while subsection (b)(2) deals with the recovery of property held in the name of one or more persons without an indication of their capacity as partners or of the existence of a partnership.

In either case, a transfer of partnership property may be avoided only if the partnership proves that it was not bound under Section 301 by the execution of the instrument of initial transfer. Under Section 301, the partnership is bound by a transfer in the ordinary course of business, unless the transferee actually knew or had received a notification of the partner's lack of authority. See Section 102(a) and (d). The reference to Section 301, rather than Section 301(1), is intended to clarify that a partner's actual authority is not revoked by Section 302. Compare UPA § 10(1) (refers to partner's authority under Section 9(1)).

The burden of proof is on the partnership to prove the partner's lack of authority and, in the case of a subsequent transferee, the transferee's knowledge or notification thereof. Thus, even if the transfer to the initial transferee could be avoided, the partnership may not recover the property from a subsequent purchaser or other transferee for value unless it also proves that the subsequent transferee knew or had received a notification of the partner's lack of authority with respect to the initial transfer. Since knowledge is required, rather than