Multiple choice

A firm’s bank account should be opened in the name of the firm only as Section ___ of Indian partnership Act restricts opening a bank account on behalf of a firm _____.

  1. 19, by one partner

  2. 19(1), by all partners

  3. 19 (2), in its own name

  4. 19(2), in one partner's name
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Section 19(2) of Indian Partnership Act: 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 banking 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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