Nature and Extent of Partner’s Authority to Bind the Firm by His Acts
Sections 18 declares that from the point of view of the third parties a partner is an agent of the firm for the purposes of the business of the firm. Even if only one partner acts on behalf of the firm liable. One partner can make all the other partners liable only if he acts within his express or implied authority. Thus, it is the express and implied authority of the partners which decides the nature and extent of their authority to kind the firm. Express authority of a partner When a partner is expressly authorized by an agreement of all the partners to do certain acts on behalf of the firm, it is called the express authority of a partner. A partner can kind the firm by any such act which falls width the scope of his authority, even if it does not fall within the scope of business. Continue reading