Doctrine of Implied Authority of a Partner:
The doctrine of implied authority of a partner refers to the authority that partners have to act on behalf of the firm in certain situations, even without explicit authorization from the other partners. This authority is implied by the partnership agreement and the nature of the partnership relationship.
The doctrine of implied authority applies to various acts that partners may undertake on behalf of the firm. In this case, we are asked to identify which acts are covered by the doctrine of implied authority. The correct answers are A and D.
A: Act of settling accounts with the person dealing with the firm:
- Partners have implied authority to settle accounts with individuals or entities that have transacted with the firm.
- This includes the authority to negotiate and agree on payment terms, resolve disputes, and handle any financial matters related to the firm's dealings.
D: Act of engaging servants for the business of the firm:
- Partners have implied authority to hire and engage employees or servants for the firm.
- This includes the authority to interview, hire, set terms of employment, and supervise employees on behalf of the firm.
It is important to note that the doctrine of implied authority has its limits. Partners cannot undertake acts that are outside the scope of the partnership's ordinary course of business or acts that are specifically prohibited by the partnership agreement. Additionally, if a partner acts beyond their implied authority, they may be personally liable for any resulting obligations or liabilities.
In summary, the doctrine of implied authority of a partner applies to various acts, including settling accounts with individuals dealing with the firm and engaging servants for the business of the firm. Partners have the authority to undertake these acts on behalf of the firm, even without explicit authorization from the other partners. However, it is crucial to consult the partnership agreement and understand the limits of implied authority to avoid any legal or financial implications.

The doctrine of implied authority of a partner refers to the authority granted to a partner by virtue of their partnership agreement, even if such authority is not explicitly stated. This doctrine allows a partner to act on behalf of the firm and bind the firm in certain transactions.

According to the given options, the doctrine of implied authority of a partner applies to the following situations:

a) Act of settling accounts with the person dealing with the firm: Settlement of accounts is an essential part of business operations. When a partner settles accounts with a person who has dealt with the firm, they are acting within their implied authority. This implies that the partner has the authority to negotiate and settle the financial obligations of the firm with the concerned party.

d) Act of engaging servants for the business of the firm: In order to carry out the day-to-day operations of the firm, it may be necessary to engage and hire employees or servants. The partner, acting within the implied authority, has the power to engage servants on behalf of the firm. This allows the partner to recruit and manage the workforce required for the smooth functioning of the business.

These two options fall under the doctrine of implied authority of a partner because they involve actions that are commonly associated with the management and operation of a partnership. Settling accounts and engaging servants are routine activities that partners are expected to perform in the normal course of business. Therefore, partners are granted the implied authority to undertake these actions without seeking explicit authorization from the other partners.

b) Act of acquiring immovable property on behalf of the firm: Acquiring immovable property involves significant financial commitments and legal implications. Such transactions require explicit authorization from the other partners or compliance with the partnership agreement. Therefore, this option does not fall under the doctrine of implied authority of a partner.

c) Act of admitting a liability in a suit against the firm: Admitting a liability in a suit against the firm also requires careful consideration and should be based on legal advice. This action goes beyond the routine management activities of a partner and may have significant consequences for the firm. Hence, the partner should not assume implied authority in this matter and should seek explicit authorization from the other partners or comply with the partnership agreement.

In conclusion, the doctrine of implied authority of a partner applies to the act of settling accounts with the person dealing with the firm and the act of engaging servants for the business of the firm. These actions are considered routine and fall within the authority of a partner to manage the day-to-day operations of the partnership.