Short notes on Implied authority of a partner

Implied authority of a partner: Every partner has the implied authority to bind the firm and other partners by his acts done in the name of the firm, in the ordinary course of the firm’s business and with the intention to bind the firm.

However, a partner has no implied authority, unless otherwise expressed in the partnership deed, in the following matters:

(a) To submit a dispute relating to the firm to arbitration;

(b) To compromise or relinquish any claim or a portion of claim made by the firm;

(c) To withdraw a suit or proceedings filed on behalf of the firm; (id) to admit any liability in a suit or proceeding against the firm;

(e) To open a bank account on behalf of the firm in his own name;

(f) To acquire or purchase immovable property for and on behalf of the firm;

(g) To transfer or sell immovable property belonging to the firm; and

(h) To enter into partnership with others on behalf of the firm.