Question

A,B C, D and E are partners of a banking firm. State the legal position Of firm for the following acts of partners
(a) A borrows money in the name of the firm.
(b) B orders for certain quantity of wine, on the firms letter head.
(c) C receives money from a borrower of a firm and utilised this amount for personal use without informing other partners about the receipt of this money.
(d) .D borrows money on his own credit by giving his own promissory note and utilises subsequently this amount for firms use.

Answer 1

Solution:
Analysts of partners acts whether satisfying the conditions of Sec. 19.
Decision and Reason:
(a) The firm. is, iiabte.for the acts of A and C.. Their acts fall- within the scope of implied authority because all the conditions of Section 19:have been fulfilled.
(b) The firm is not liable for the acts of Band,D.Their acts do not fall within the scope of implied authority because all the conditions of Section 19 have not been fulfilled.

Partners act	Whether the act done relates to the normal business of the firm	Whether the act has been done in the usual way	Whether the act has been done in/firms name or with an intention to bind finn
As act	Yes	Yes	Yes
B's act	No	Yes	Yes
Cs act	Yes	Yes	Yes
Ds act	Yes	Yes	No