Question

Where authority of a partner is not conferred by mutual agreement, but acts of partner which are excised in ordinary course of business and which bind the firm are known ________ of partner.

• A. Implied authority
• B. Ostensible authority
• C. Apparent authority
• D. (A) or (B) or (C)

Answer 1

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

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.