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Right of a partner to open a bank account on behalf of the firm in his own name is not with in the scope of ____ authority.
- a)Implied
- b)Express
- c)Specified
- d)Restrictive
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Right of a partner to open a bank account on behalf of the firm in his...
Scope of Implied Authority in Partnership
Implied authority refers to the powers that are not specifically stated in the partnership agreement but are necessary to carry out the business operations. In other words, it is the authority that partners assume they have based on the nature of their partnership.
Explanation of the Answer
The right of a partner to open a bank account on behalf of the firm in his own name is not within the scope of implied authority. This means that the partner cannot assume that he has the authority to open a bank account in his own name without the specific consent of the other partners or the partnership agreement stating otherwise.
Other Types of Authority in Partnership
Express Authority: This refers to the powers explicitly granted to the partners in the partnership agreement. It can be restricted or expanded based on the terms of the agreement.
Specified Authority: This refers to the powers that are specifically assigned to a partner by the other partners or the partnership agreement.
Restrictive Authority: This refers to the limitations or restrictions placed on a partner's authority to act on behalf of the partnership. It can be imposed by the other partners or by the partnership agreement.
Conclusion
Partnership agreements should clearly define the scope of authority of each partner to avoid misunderstandings and conflicts. Partners should also communicate with each other before taking any major decisions or actions on behalf of the partnership.
Implied authority refers to the powers that are not specifically stated in the partnership agreement but are necessary to carry out the business operations. In other words, it is the authority that partners assume they have based on the nature of their partnership.
Explanation of the Answer
The right of a partner to open a bank account on behalf of the firm in his own name is not within the scope of implied authority. This means that the partner cannot assume that he has the authority to open a bank account in his own name without the specific consent of the other partners or the partnership agreement stating otherwise.
Other Types of Authority in Partnership
Express Authority: This refers to the powers explicitly granted to the partners in the partnership agreement. It can be restricted or expanded based on the terms of the agreement.
Specified Authority: This refers to the powers that are specifically assigned to a partner by the other partners or the partnership agreement.
Restrictive Authority: This refers to the limitations or restrictions placed on a partner's authority to act on behalf of the partnership. It can be imposed by the other partners or by the partnership agreement.
Conclusion
Partnership agreements should clearly define the scope of authority of each partner to avoid misunderstandings and conflicts. Partners should also communicate with each other before taking any major decisions or actions on behalf of the partnership.
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Right of a partner to open a bank account on behalf of the firm in his...
Bcoz he has give or provide a legal written document 4 doing soo
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Right of a partner to open a bank account on behalf of the firm in his own name is not with in the scope of ____ authority.a)Impliedb)Expressc)Specifiedd)RestrictiveCorrect answer is option 'A'. Can you explain this answer?
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