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Which of the following acts are not included in the implied authority of a partner?
- a)To buy or sell goods on accounts of partners.
- b)To borrow money for the purposes of firm.
- c)To enter into partnership on behalf of firm.
- d)To engage a lawyer to defend actions against firm.
Correct answer is option 'C'. Can you explain this answer?
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Most Upvoted Answer
Which of the following acts are not included in the implied authority ...
Implied authority of a partner refers to the authority that a partner is assumed to have by virtue of being a partner in a firm. It includes all acts that are necessary for carrying on the usual business of the firm. However, there are certain acts that are not included in the implied authority of a partner. One such act is:
c) To enter into partnership on behalf of the firm: A partner does not have the authority to enter into a partnership on behalf of the firm without the express consent of all the partners. This is because the admission of a new partner affects the rights and obligations of all the existing partners, and therefore, requires their consent.
Other acts that may not be included in the implied authority of a partner are:
- To lend money on behalf of the firm: A partner may not have the authority to lend money on behalf of the firm without the express consent of all the partners.
- To create a charge on the assets of the firm: A partner may not have the authority to create a charge on the assets of the firm without the express consent of all the partners.
- To settle a claim against the firm: A partner may not have the authority to settle a claim against the firm without the express consent of all the partners.
In conclusion, while a partner has implied authority to carry out acts necessary for carrying on the usual business of the firm, there are certain acts that may require the express consent of all the partners.
c) To enter into partnership on behalf of the firm: A partner does not have the authority to enter into a partnership on behalf of the firm without the express consent of all the partners. This is because the admission of a new partner affects the rights and obligations of all the existing partners, and therefore, requires their consent.
Other acts that may not be included in the implied authority of a partner are:
- To lend money on behalf of the firm: A partner may not have the authority to lend money on behalf of the firm without the express consent of all the partners.
- To create a charge on the assets of the firm: A partner may not have the authority to create a charge on the assets of the firm without the express consent of all the partners.
- To settle a claim against the firm: A partner may not have the authority to settle a claim against the firm without the express consent of all the partners.
In conclusion, while a partner has implied authority to carry out acts necessary for carrying on the usual business of the firm, there are certain acts that may require the express consent of all the partners.
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Which of the following acts are not included in the implied authority ...
The correct answer is c: To enter into partnership on behalf of the firm.
Implied authority of a partner refers to the powers and actions that a partner can take on behalf of the partnership without needing explicit approval from the other partners. These actions are generally considered necessary to carry out the ordinary course of the partnership's business.
Explanation:
To buy or sell goods on accounts of partners: This is part of the implied authority of a partner, as it is necessary for the daily operations of the partnership, such as purchasing inventory or selling products.
To borrow money for the purposes of the firm: This is also part of the implied authority of a partner, as borrowing money might be necessary for the partnership to finance its operations, such as buying equipment or expanding the business.
To enter into partnership on behalf of the firm: This is not part of the implied authority of a partner because entering into a partnership significantly affects the structure, legal obligations, and profit-sharing arrangements of the existing partnership. Such decisions require explicit consent and agreement from all existing partners.
To engage a lawyer to defend actions against the firm: This is part of the implied authority of a partner, as defending the partnership against legal actions is necessary to protect the partnership's interests and maintain its ongoing operations.
In summary, while a partner has implied authority to carry out actions necessary for the ordinary course of the partnership's business, entering into a partnership on behalf of the firm is not included in the implied authority, as it involves significant changes to the legal and financial structure of the existing partnership.
Implied authority of a partner refers to the powers and actions that a partner can take on behalf of the partnership without needing explicit approval from the other partners. These actions are generally considered necessary to carry out the ordinary course of the partnership's business.
Explanation:
To buy or sell goods on accounts of partners: This is part of the implied authority of a partner, as it is necessary for the daily operations of the partnership, such as purchasing inventory or selling products.
To borrow money for the purposes of the firm: This is also part of the implied authority of a partner, as borrowing money might be necessary for the partnership to finance its operations, such as buying equipment or expanding the business.
To enter into partnership on behalf of the firm: This is not part of the implied authority of a partner because entering into a partnership significantly affects the structure, legal obligations, and profit-sharing arrangements of the existing partnership. Such decisions require explicit consent and agreement from all existing partners.
To engage a lawyer to defend actions against the firm: This is part of the implied authority of a partner, as defending the partnership against legal actions is necessary to protect the partnership's interests and maintain its ongoing operations.
In summary, while a partner has implied authority to carry out actions necessary for the ordinary course of the partnership's business, entering into a partnership on behalf of the firm is not included in the implied authority, as it involves significant changes to the legal and financial structure of the existing partnership.
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Which of the following acts are not included in the implied authority of a partner?a)To buy or sell goods on accounts of partners.b)To borrow money for the purposes of firm.c)To enter into partnership on behalf of firm.d)To engage a lawyer to defend actions against firm.Correct answer is option 'C'. Can you explain this answer?
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