Understanding Partner Implied Authority Scope
Implied authority allows a partner to perform acts reasonably necessary or customary for carrying on the partnership's business. These acts bind the firm.
Acts Within Implied Authority
- Option 1: An act done to conduct the specific type of business the firm engages in falls under implied authority.
- Option 2: Performing actions in the standard, usual manner for the firm's business operations is part of implied authority.
- Option 4: Acting in the firm's name or in a way that clearly indicates the intention to legally bind the partnership is crucial for implied authority.
Act Outside Implied Authority
Option 3: The act of acquiring immovable property (like land or buildings) on behalf of the firm is generally considered an extraordinary act. It typically requires express authorization from all partners, not just implied authority, as it involves significant commitment and is not usually part of the 'usual way' of conducting business.
Therefore, acquiring immovable property is not within the scope of a partner's implied authority.
Important Questions from Indian Partnership Act, 1932
- As per Section 206 AA in Income tax Act, 1961, if PAN (Permanent Account Number) is not provided, the rate of TDS would be __________.
- Which one of the following is incorrect ?
Under the Partnership Act, a minor who has been admitted to partnership when attains majority should adhere to the following : - Match List - I with List - II and select the correct answer using the code given below :
List - I List - II (a) Mutual Rights and Liabilities of Partners (i) Section 34 of Partnership Act (b) Dissolution of Partnership (ii) Section 13 of Partnership Act (c) Retirement of a Partner (iii) Section 39 of Partnership Act (d) Insolvency of a Partner (iv) Section 32 of Partnership Act
Code : (a) (b) (c) (d) Under the Indian Partnership Act, 1932, which statements are false?
A. Partners have no duty to carry on business to the greatest common advantage.
B. In the absence of a contrary contract, interest on subscribed capital is payable even when there are no profits.
C. If the business continues using an outgoing partner’s share without final settlement, and no contrary contract applies, that partner may opt for attributable subsequent profits or 6% annual interest on the share, subject to section 37.
D. A majority may expel a partner without any contractual power and without acting in good faith.Which one of the following statements is True' in partnership?
