Multiple choice

In the absence of custom of trade to the contrary, the implied authority of a partner does not empower him to

(a) submit a dispute relating to the business of the firm to arbitration (b) compromise or relinquish any claim or portion of a claim by the firm (c) acquire immovable property on behalf of the firm

  1. Only (a) and (b)

  2. Only (b) and (c)

  3. Only (a) and (c)

  4. All of the above
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A Correct answer
Explanation

In the absence of any usage or custom of trade to the contrary, the implied authority of a partner does not empower him to

(a) submit a dispute relating to the business of the firm to arbitration

(b) open a bank account on behalf of the firm in his own name

(c) compromise or relinquish any claim or portion of a claim by the firm

(d) withdraw a suit or proceeding filed on behalf of the firm

(e) admit any liability in a suit or proceeding against the firm

(f) acquire immovable property on behalf of the firm

(g) transfer immovable property belonging to the firm

(h) enter into partnership on behalf of the firm

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