Question

An act done by a partner in the course of the firm's business is:

• A. Binding on all partners only when expressly authorised by all co-partners
• B. Binding on the firm and all partners if done within the scope of implied authority
• C. Not binding on other partners unless ratified after the act is performed
• D. Binding only on the acting partner unless specifically approved in the partnership deed

Hint:

Every partner is: \[ \text{an agent of the firm} \] Hence acts done within implied authority bind all partners.

Answer 1

The Correct Option is B

Under the: \[ \text{Indian Partnership Act, 1932} \] every partner acts as: \[ \text{an agent of the firm} \] and also: \[ \text{an agent of other partners} \] Therefore, any act performed by a partner:
• In the ordinary course of business
• Within the scope of implied authority is binding on: \[ \text{the firm and all partners} \] Implied authority includes acts that are:
• Necessary for carrying on business
• Usually done in similar businesses
• Within normal business operations Option analysis:
• Option (A): Incorrect because express permission is not always required
• Option (B): Correct
• Option (C): Incorrect because ratification is not necessary for acts within implied authority
• Option (D): Incorrect because such acts bind the entire firm Therefore: \[ \boxed{\text{(B)}} \]