Sec 20 of IPA, 1932

Corporate & Other Laws

If a partner of a firm acts beyond his implied authority while dealing with a person and such person does not know that the partner of the firm has been acting beyond his implied authority, Can such person sue the firm? Is it the same case even in LLP?

Sibi Srinivasan

CA Final

★ 22K+

19-Sep-21 14:13

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Answers (2)

Best Answer

If the person is not aware of the restrictions on the implied authority of partner then, the firm will be liable. This concept cannot be applied in case of LLP as the concept of implied authority does not hold good in case of LLP.

Ashlesha Atal

Faculty

20-Sep-21 11:57

Ok mam tq

Thread Starter

Sibi Srinivasan

CA Final

★ 22K+

20-Sep-21 12:16