Implied Authority of a partner

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:

  1. Purchasing goods on behalf of the firm.
  2. Selling goods for the firm.
  3. Receiving payments of the debts due to the firm.
  4. Settling accounts with the person dealing with the firm
  5. Borrowing money on the credit of the firm.
  6. Drawing, accepting, and endorsing bills and other negotiable instrument in the name of the firm.
  7. He may employ an advocate in an action against the firm for trade debt.
  8. Pledging the goods of the firm for the purpose of borrowing money.
  9. He may employ and discharge servants.



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