Z and W are partners in a stationery business. Z orders on the firm's letterhead to supply two bags of…
A partner’s implied authority under section 19(1) binds the firm only for acts carrying on its kind of business in the usual way. Ordering wheat for a partner’s residence is…
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Z and W are partners in a stationery business. Z orders on the firm's letterhead to supply two bags of wheat at his residence. What will be the liability of the firm under the Indian Partnership Act, 1932?
Answer and explanation
Correct answer A
A partner’s implied authority under section 19(1) binds the firm only for acts carrying on its kind of business in the usual way. Ordering wheat for a partner’s residence is outside the ordinary stationery business. Using the firm’s letterhead does not alone expand that authority or create a half-share debt for the firm; no separate authorisation or ratification is stated.
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