Question

The implied authority of a partner is also known as _________________.

• A. Ostensible authority
• B. Apparent authority
• C. (A) or (B)
• D. Power of partner

Answer 1

The correct option is C (A) or (B)

Implied Authority is the authority that is not conferred by the mutual agreement between the partners and which is not bind on other partners. This authority is acted on the ordinary course of business and other partners are not liable for the consequences of such a authority. These authority is also known as ostensible authority or apparent authority.