Question

Which of the following act fall outside the implied authority?

• A. Pledging goods of the firm as security
• B. Drawing, accepting and endorsing negotiable instruments
• C. Acquire immovable property on behalf of the firm
• D. Hiring solicitors to defend actions against the firm

Answer 1

The correct option is C Acquire immovable property on behalf of the firm

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.