Question

The acts of every partner who does any act for carrying on in the usual way the business of the kind carried on by the firm bind the firm and his partners unless __________.

• A. The partner so acting has no authority to act for the firm in that matter
• B. The person with whom he is dealing knows that he has no authority
• C. Does not know or believe him to be a partner
• D. All of the above

Answer 1

The correct option is D All of the above

A partner in a Partnership agreement of a firm can make secret profits without the consent of other partners only from some other business and not from the business of the partnership firm. Even the business should not compete with the business of the partnership firm. Therefore, If the partner wants to carry on such a business then he shall be considered as no partner for the firm.