Which of the following is implied authority of a partner in a firm?
Receiving payment of a sum due to the firm is within a partner's implied authority under s.19, so a partner who "receives a sum of money on behalf of the firm" binds the…
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Which of the following is implied authority of a partner in a firm?
Answer and explanation
Correct answer C
Receiving payment of a sum due to the firm is within a partner's implied authority under s.19, so a partner who "receives a sum of money on behalf of the firm" binds the firm; under s.19(2) he cannot "enter into a partnership on behalf of the firm" or "admit liability in a suit on behalf of the firm", and a partner who "opens a banking account on behalf of the firm in his own name" acts outside implied authority.
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