(A). IMPLIED AUTHORITY AND IT’S LIMITATION.
Implied authority means the authority to bind the firm which arises by implication
of law from the fact of partnership.
The implied authority does not empowered him to--
1. Submit a dispute to arbitration.
2. Opening a bank account by own name.
3. Compromise or relinquish any claim.
4. Withdraw or proceeding a suit against any partner or firm.
5. Admit any liability.
6. Acquire or transfer of immovable property.
7. Enter into partnership on behalf of the firm.
(B). PARTNERSHIP AND CO-OWNERSHIP.
“Partnership is the relation between persons who have agreed to share the
profits of a business carried on by all or any of them acting for all.”
Co-ownership means joint ownership.
Example: A and B jointly buy a car. They are co-owner but not necessarily partner.
1. Each partner is the agent of the other partner but a co-owner is not a agent of
2. Partnership always arises by an agreement, but co-ownership may arises by
agreement and operation of law.
3. A co-ownership can transfer his interest to a third party but a partner can’t
do it without the consent of other partners.
4. A partnership always implies a business, co-ownership may exist without
5. in a partnership profit sharing is a must, but in co-ownership profit sharing is
(C) Registered of a firm:
The registration of a partnership is not compulsory. On the other hand an
unregistered firm is not an illegal association. But an unregistered firm suffers
from certain disabilities and therefore registration is necessary for carrying on
Consequences of non-registration:
1. A partner of an unregistered firm cannot file a suit against the firm and or
any other partner.
2. no suit can be filed on behalf of an unregistered firm against any third party.
3. an unregistered firm cannot claim a set-off in a suit.
1. A partner of an unregistered firm can file a suit for dissolve of a firm.
2. Realization of the properties of an dissolved firm.
3. An unregistered firm can file a suit for a sum exceeding Rs. 100.00 in value.