Describe the implied authority of a partner in every partnership business
Implied Authority of a partner
In a trading firm the implied authority of a partner has been held to include:
- Purchasing goods on behalf of the firm.
- Selling goods for the firm.
- Receiving payments of the debts due to the firm.
- Settling accounts with the person dealing with the firm
- Borrowing money on the credit of the firm.
- Drawing, accepting, and endorsing bills and other negotiable instrument in the name of the firm.
- He may employ an advocate in an action against the firm for trade debt.
- Pledging the goods of the firm for the purpose of borrowing money.
- He may employ and discharge servants.