19.
Implied authority of partner as agent of the
firm.- (1) Subject to the provisions
of section 22, the act of a partner which is
done to carry on, in the usual way, business
of the kind carried on by the firm, binds the
firm. The authority of a partner to bind the
firm conferred by this section is called his
"implied authority".
(2) In the absence of any
usage or custom of trade to the contrary, the
implied authority of a partner does not empower
him to –
(a) submit a dispute relating
to the business of the firm to arbitration,
(b) open a banking account
on behalf of the firm in his own name,
(c) compromise or relinquish
any claim or portion of a claim by the firm,
(d) withdraw a suit or proceeding
filed on behalf of the firm,
(e) admit any liability in
a suit or proceeding against the firm,
(f) acquire immovable property
on behalf of the firm,
(g) transfer immovable property
belonging to the firm, or
(h) enter into partnership
on behalf of the firm.
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