It is not included in the implied authority of a partner
Reveal answer
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It is not included in the implied authority of a partner
to buy or sell goods on account
to borrow money for the purposes of the firm
to enter into partnership on behalf of the firm
to engage a lawyer to defend actions against the firm
Option (1) is incorrect: In the absence of any usage or custom of trade to the contrary, a partner has implied authority to buy or sell goods on account. Option (2) is incorrect: In the absence of any usage or custom of trade to the contrary, a partner has implied authority to borrow money for the purposes of the firm. Option (3) is correct: Under Section 19(2) of the Act, the implied authority of a partner does not empower him to enter into partnership on behalf of the firm. Option (4) is incorrect: In the absence of any usage or custom of trade to the contrary, a partner has implied authority to engage a lawyer to defend actions against the firm.