Question

A, B, C, D and E are partners. A and B executed a promissory note in favour of C. agreeing to pay him a certain sum due to him on taking partnership accounts. Are D and S bound by the promissory note?

Answer 1

Solution: Section to which the given problem relates: Section 18.
Decision: No.
Reason: The principle of agency is applicable only to the act done by partners for the purpose of the
business of the firm.
[Leading. case: Hoshiar Singh. V. Udairam]