Multiple choice

Implied authority of the partner does not empower him to

  1. open a bank account on behalf of the firm in his own name

  2. compromise or relinquish any claim or portion of a claim by the firm against an outsider

  3. both of the above

  4. none of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Implied authority of a partner allows routine business acts but not extraordinary decisions. Opening a bank account in one's own name or compromising claims without specific authority exceed implied powers. Both options A and B correctly list acts outside implied authority.

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