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Business Environment and Law-Performance And Discharge Of Contracts

Authority Of A Partner-Performance And Discharge Of Contracts

   Posted On :  08.05.2018 12:39 am

Authority Of A Partner-Performance And Discharge Of Contracts

Authority Of A Partner
 
A. Express Authority
B. Implied Authority “The act of partner which is done to carry on, in the usual way, business of the kind carried on by the firm, binds the firm”. Thus the authority of a partner to bind the firm is called ‘Implied authority”.
C. Authority In An Emergency: A partner has authority in an emergency to do all such acts for the purpose of protecting the firm from loss as would be done by a person of ordinary prudence, in his own case, acting under similar circumstances, and such acts bind the firm.

Reconstitution Of A Firm

 
 
A change in the constitution of the firm occurs when a new partner is admitted or an old partner retires or dies. The partnership is reconstituted on:

1. Admission
2. Retirement
3. Expulsion 
4. Insolvency
5. Death of a partner
6. Transfer of interests by a partner.
 

Dissolution Of A Firm

 
 
Dissolution of a firm means an end of the firm. The Indian Partnership Act distinguishes between:
 
1. Dissolution of firm, and
 
2. Dissolution of partnership.
 
Section 39 provides that the dissolution of partnership between all the partners of a firm is called the “dissolution of the firm”.

 

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