Mark the incorrect statement in relation to implied authority of a partner under Section 19
Verified Answer
A. A partner can acquire immovable property on firm's behalf or transfer immovable property (e.g. sale, mortgage, lease or gift) belonging to the firm
B. A partner can admit any liability in a suit or proceeding against the firm
C. A partner can always enter into partnership on behalf of firm
D. All are correct
Explanation:
Section 19(2) of the Indian Partnership Act, 1932, explicitly states that a partner has no implied authority to (a) transfer immovable property belonging to the firm, (c) admit any liability in a suit or proceeding against the firm, or (e) enter into partnership on behalf of the firm. Therefore, statements (A), (B), and (C) are all incorrect as they assert implied authority for actions where none exists. Option (D) 'All are correct' is also incorrect because A, B, and C are not correct statements. This question is flawed as multiple options are incorrect statements. Option (A) is chosen as the first explicit exclusion listed in the statute.