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Implied Authority of Partner

The document outlines the implied authority that partners have to bind the firm through their actions taken in the ordinary course of business with the intention of binding the firm. It lists actions a partner can take, such as buying/selling goods, raising loans, receiving payments, and engaging servants. However, a partner does not have implied authority for actions like submitting disputes to arbitration, compromising claims, withdrawing suits, admitting liability, opening bank accounts in their name, acquiring immovable property, transferring immovable property, or entering new partnerships without express permission in the partnership deed.

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Frank Nobod
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390 views1 page

Implied Authority of Partner

The document outlines the implied authority that partners have to bind the firm through their actions taken in the ordinary course of business with the intention of binding the firm. It lists actions a partner can take, such as buying/selling goods, raising loans, receiving payments, and engaging servants. However, a partner does not have implied authority for actions like submitting disputes to arbitration, compromising claims, withdrawing suits, admitting liability, opening bank accounts in their name, acquiring immovable property, transferring immovable property, or entering new partnerships without express permission in the partnership deed.

Uploaded by

Frank Nobod
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Every partner has the implied authority to bind the firm and other partners by his acts done

in the
name of the firm, in the ordinary course of the firm's business and with the intention to bind the
firm.

A partner has the implied authority to do the following acts on behalf of his firm.

(i) To buy, sell and pledge goods on behalf of the firm.

(ii) To raise loans on the security of such assets.

(iii) To receive payments of debts due to the firm.

(iv) To accept, make an issue bills of exchange, promissory notes, etc., on behalf of the firm.

(v) To engage servants for the firm's business.

(vi) To take on lease a premises on behalf of the firm.

However, a partner has no implied authority, unless otherwise expressed in the partnership deed, in
the following matters:

(a) To submit a dispute relating to the firm to arbitration.


(b) To compromise or relinquish any claim or a portion of claim made by the firm.
(c) To withdraw a suit or proceeding filed on behalf of the firm.
(d) To admit any liability in a suit or proceeding against the firm.

(e) To open a bank account on behalf of the firm in his own name.

(f) To acquire or purchase immovable property for and on behalf of the firm

(g) To transfer or sell immovable property belong to the firm; and

(h) To enter into partnership with others on behalf of the firm.

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