Multiple choice

Implied authority of the partner can be used by him in which of the following circumstances?

  1. Withdraw a suit pending in a court

  2. Acquire a transfer of immovable property on behalf of the firm

  3. Open bank account on behalf of the firm in his own name

  4. Appoint agent with the consent of the other partners
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Implied authority, also known as “usual authority”, is the authority of an agent acting on behalf of another person or entity. The person acting with implied authority does what is reasonably necessary in order to effectively perform his duties. The acts undertaken surrounding the use of implied authority depend on the circumstances and the case. Thus, in case of implied authority of the partner, one can appoint agent with the consent of the other partners. 

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