Question

In the absence of usage of custom of trade to the contrary, the authority of a partner does not empower him to _______.

• A. acquire movable property on behalf of the firm
• B. transfer movable property
• C. both a and b
• D. none of the above

Answer 1

Answer: (C)

both a and b

In the absence of any usage or custom of trade to the contrary, the implied authority of a partner does not empower him to transfer movable property or acquire movable property on behalf of the firm. Mode of doing act to bind firm.

In order to bind a firm, an act or instrument done or executed by a partner or other person on behalf of the firm shall be done or executed in the firm name or in any other manner expressing or implying an intention to bind the firm.