Question

To bind the firm under implied authority, the act must be done in the ________ of carrying on the firm's business.

• A. Regular way
• B. Usual way
• C. Routine way
• D. Extraordinary way

Answer 1

Answer: (B)

Usual way

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 the firm is bound by such authority when the act is done in a normal way of carrying on the firm's business. These authority is also known as ostensible authority or apparent authority.