The scope of implied authority of a partner under section 19 of Indian Partnership Act is linked with
Verified Answer
A. The usual manner of carrying on the business
B. Kind or nature of the business
C. Both (A) & (B)
D. Only (A) & not (B)
Explanation:
Section 19(1) of the Indian Partnership Act, 1932, states that "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." This means that for an act to fall within a partner's implied authority, it must be of the "kind or nature of the business" carried on by the firm and done "in the usual way" of carrying on that kind of business. Therefore, both (A) and (B) are relevant.