Under partnership Act 1932, capacity of a partner to run the business of the Company is called authority of the partner.This authority can be expressed or implied.All partners are bound to perform their particular role or exercise their authorities to in order to run the business of the Company.Implied Authority is not written in any where but partner has such authorities which can be used by him at any time to run the business.
Forms of Authority:
Express Authority
Implied Authority
Implied Authority of Partner:
Receiving and issuance of bills
To receive loans
To borrow cash
To receive cash
Procurement of goods
Sale of goods
Formation of Contract
To appoint a prosecutor
Acts outside Implied Authority:
Transfer of immovable property
Sale of immovable property
Acquisition of immovable property
Withdrawal of suit
Confession of any claim
Submit a dispute for arbitration
Bank account
Entering into Partnership with others