Ch 13: Relations of Partners to Third Parties
1. Authority & Liabilities of a partner and the firm
1-2 Authority of Partners [I]
Query: In restriction of partners implied authority by contract restriction is only effective when 1.3rd party knows of restriction second point ki koi example hai??
Response: For example, XYZ firm has restricted authority of its partners to deal in tobacco and this is known to all dealers in the market. However, Jawad (a partner in XYZ firm) purchased tobacco on credit on behalf of the firm (however, name of the firm was not mentioned) from Saleem (a tobacco dealer). Saleem did not know that Jawad is partner in XYZ firm.......hope it works.
Query: Is the letter of authority duly signed from all partners on one partner in a firm is enough to empower a single partner to execute a particular task like sell immovable property or POA is required? Will this satisfy direct authority covered in section 19 of the act?
Response: Yes, a letter of authority duly signed by all the partners is enough to empower a single partner to execute a particular task and yes, it covers direct authority. However, it is possible that laws relating to transfer of immovable property require any specific form and conditions regarding POA and those will need to be followed additinally.
2. Holding out
3. Rights of transferee of a partner's interest
4. Minor admitted to the benefits of partnership
5. Objective Based Q&A