Multiple choice

In which of the following cases, is the firm not bound by the act of the partner?

  1. When act is done by a partner or his agent on behalf of the firm.

  2. When act is done by a partner in the name of the firm.

  3. When act is done by a partner in any manner expressing or implying an intention to bind the firm.

  4. When act is done fraudulently or negligently.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Firm is not bound by the acts done fraudulently or negligently as a partner is doing fraud on his own behalf.

Keep practicing — related questions