Amendment status not verified — confirm the current text below against the official source.
Implied authority of partner as agent of the firm- (1) subject to the provisions of Sec. 22, the act of a partner which is done to carry on , in the usual way, business of the kind carried on by the firm, binds the firm, The authority of a partner to bind the firm conferred by this section is called his implied authority" (2) In the absence of any usage or custom of trade to the contract, the implied authority of a partner does not empower him to - a) Submit a dispute relating to the business of the firm to arbitration. b) open a banking account on behalf of the firm in his own name. c) Compromise or relinquish any claim or portion of a claim by the firm, d) Withdraw a suit or proceeding filed on behalf of the firm. e) admit any liability in a suit or proceeding against the firm f) acquire immovable property on behalf of the firm. g) transfer immovable property belonging to the firm or h) enter into partnership on behalf of the firm. 20) Extension and restriction of partner's implied authority- The partners in a firm may, by contract between the partners, extend or restrict the implied authority of any partner. Notwithstanding any such restriction, any act done by a partner on behalf of the firm which falls within his implied authority binds the firm, unless the person with whom he is dealing knows of the restriction or does not know or believe that partner to be a partner. 21., Partner's authority in an emergency - A partner has authority, in an emergency, to do all such acts for the purpose of protecting the firm from loss as would be done by a person of ordinary prudence, in his own case, acting under similar circumstances, and such acts bind the firm.