Exceptions - authority of partners, Business Law and Ethics

Exceptions - Authority of Partners

The rule stated is a general rule, such there are a few exceptions for it.  Hence the chief of these exceptions are as follow: like;

(a) A contract is made through a partner with a third person and such third person is unaware of the partnership of the existence, so the other partners cannot be bound then provided they have forbidden such the contracting partner for act to them.

(b) A partner executes a deed, so neither the other partners nor the firm will be bound unless the contracting partner was himself prearranged authority through a deed like i.e. a power of attorney.  Although this is in accordance about the Law of Agency.

(c) The authority of a partner has been cancelled through the other partners, so and such particular partner purports to contract regards a third party so the third party concerned cannot hold such firm liable whether he knew of the cancellation of authority then like the firm can be held liable.

(d) A partner, without special authority, presented a guarantee or signs like a bill of exchange or endorses or makes a promissory note, or pledges goods or  borrows money -  like in the name of the firm - so hence the firm will not be bound as these acts are not in the customary course of the business of the firm. Whether with a trading firm, any partner may bind the firm on bills of exchange however, promissory notes, or on a contract for borrow money on behalf about the firm.  Make in mind that this applies to trading firms barely i.e. like  firms whose business is the selling  or buying of goods.

Higgins v. Beauchamp: moreover beau champs and X carried at a partnership business as managers and owners of cinemas.  However the articles of partnership forbade the partners for borrow money on the firm's behalf. Although must X borrowed money from Higgins on the firm's behalf.  But firm was held never liable, like it was not a trading firm; X had thus no implied authority for borrow on the firm's behalf there.

Posted Date: 1/30/2013 7:24:33 AM | Location : United States







Related Discussions:- Exceptions - authority of partners, Assignment Help, Ask Question on Exceptions - authority of partners, Get Answer, Expert's Help, Exceptions - authority of partners Discussions

Write discussion on Exceptions - authority of partners
Your posts are moderated
Related Questions
A landowner has a duty to protect a person that enters his/her property from injury.  If the person is a guest or licensee, then it is a higher duty of care.  However, the landowne

Recommendations for addressing phoenix activities Over the past two decades there have been a significant range of proposals for addressing phoenix activity. Most of these opt

INTERNATIONAL TRADE LAWS The laws controlling and regulating International trade have become one of the fastest growing areas of international law. International trade laws conce

What is Diplomatic immunity Diplomatic immunity relates to the protection of the representatives of another state to ensure that they perform their international political func

Fraud or improper conduct: English courts have intervened on numerous occasions and lifted the veil of incorporation in order to circumvent a fraudulent or improper design by

QUESTION Many governments around the world have sought to address the problems posed by materials on the Internet that are illegal under their offline laws, and those considered

Special Courts However in addition to the courts dealt into paragraphs as 2.1 - 2.7 above, there exist in England a number of other institutions that are called "courts" or "t

Provisions Which Prevent Capital Going Out Of The Company: In Trevor v Whitworth (1887) Lord Watson stated: "Paid-up capital may be diminished or lost in the course of the

I am  Lauren Garcia, I have an order my assignment, please answer me back here Describe what parts of business law are involved in the following scenario. What issues are invo

Liability of Maker of a Promissory Conversely S.89 provides such with the maker of a promissory notice through making it: like (a) Engages such he will pay it according to