The implied authority of a partner?
The word implied authority denotes the authority to bind the firm which arises by implication of law from the fact of partnership. With the presence of implied authority, a partner binds the firm with any of his act done in connection with the business. The partner may bind the firm for the following acts:
- The partner may buy or sell goods and usually buy those goods concerning the firm.
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- He may appoint servant for the conduct of the business.
- He may accept payment for a debt on behalf of the firm and issue a valid receipt.
- He may pledge or sell the property of the firm for the interest of business.
- He may raise loan on security of the goods of the firm.