Question

As per Indian Partnership Act, 1932, the act of a partner carried out in the ordinary course of business is generally considered to be:

• A. binding only on the partner performing the act.
• B. binding on the firm as well as all the partners collectively.
• C. binding on all partners except those who expressly dissent.
• D. non-binding unless approved unanimously by all partners.

Hint:

Think of the firm as a single unit. If one "arm" (partner) shakes hands on a deal related to the business, the whole "body" (the firm and all partners) is committed to that deal.

Answer 1

The Correct Option is B