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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…

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?

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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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