In which of the following cases, a firm will not be liable for the wrongful act or omission of a partner?
A partner has no ordinary implied authority to discharge a firm's receivable by setting it off against his own private debt. Without the firm's authority or ratification,…
Choose your answer
In which of the following cases, a firm will not be liable for the wrongful act or omission of a partner?
Answer and explanation
Correct answer C
A partner has no ordinary implied authority to discharge a firm's receivable by setting it off against his own private debt. Without the firm's authority or ratification, that personal arrangement does not bind the firm. Acts within ordinary business and authority can bind the firm notwithstanding the individual partner's wrongful conduct, as reflected in sections 19 and 26.
Practice for these exams
-
UGC NET Law
Subject revision
See pack details on LawMint.net -
Delhi Judicial Services
-
CUET PG Law (LL.M.)
Subject revision
-
Uttarakhand Judicial Services
Subject revision