Who is/are bound by the acts done by the partners in name of the firm and in good faith?

Option (1) is correct: U/s 22 of the Act, in order to bind a firm, an act done by a partner or other person on behalf of the firm shall be done in the firm name or in any other manner expressing or implying an intention to bind the firm. Option (2) is incorrect: Partners are not bound by the acts done by the partners in name of the firm and in good faith. Option (3) is incorrect: Third party can never be bound by the acts done by the partners in name of the firm and in good faith.