Multiple choice

Implied authority of the partner does not empower him to

  1. submit a dispute relating to the business of the firm to arbitration

  2. withdraw a suit or proceedings filed on behalf of the firm.

  3. both (1) and (2)

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

A partner's implied authority covers routine business acts but excludes major decisions like submitting disputes to arbitration or withdrawing lawsuits. These require express authorization from all partners as they significantly affect the firm's legal position. Both acts (1) and (2) require specific partner consent beyond implied authority.

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