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Partnership Act
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Is section 19(2) are the exceptions where implied authority of partner doesn't bind the firm. Also explain this example 5
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Yes , Sec 19(2) clearly states that the "Implied authority of a partner DOS NOT EMPOWER HIM to ....." These are the exceptions and beyond the scope of the implied authority of the partners. Example 5 - Here X , without the authority has borrowed and executed a promissory note which does not bind the firm as it's not part of ordinary business to borrow and execute negotiable instruments. The partner can execute , but he is personally liable for it. This is for the ordinary business. But for the commercial business (or) special business the partner can borrow and execute the negotiable instrument on behalf of the firm which binds the firm. So the underlying concept is that the THE IMPLIED AUTHORITY OF THE PARTNER MAY DIFFER IN DIFFERENT KINDS OF BUSINESS. Hope I made some sense.
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