Table of Cases

Akbar v. Nath

Indur v. Kandadai

Saremal v. Kapurchand

Shars Cars, LCC v. Elder

Introduction

Implied authority of a partner refers to the rights and liabilities which a partner has to
be bound by the firm which by the acts of his own are in the interest of the firm or an
organization. The agent to this is having the jurisdiction to perform acts which are reasonably to
accomplish the works and purpose of an organization. Now, as per the contract law, ‘implied
authority of a partner’ have the ability to make any legally binding contract on behalf of
company or other.1

Partnership is also a different in terms as compared with the co-ownership. Liabilities

of co-owners are different from those which are being created in partnership as a partnership
exist when there is a contract which existed but in co-ownership without the contract ownership
existed. There are various duties on the partner which has to be done on the basis on intention of
profit of the firm.

1
S.S. Gulshan and G.K. Kapoor (rev.) BUSINESS LAW INCLUDING COMPANY LAW, 12th ed, 2005. p.163.
Aim

To know Implied Authority of a partner using various case laws and use relevant information to
make this research a Judicial approach.

Objectives

1. To study implied authority of a partner using various case laws.

2. To study the provisions of statutes and interpret with the approach of the Judiciary on the
matters implied authority of a partner.

Hypothesis
Content

Joint liabilities of Partners: The joint liability of partnership of all the partners that a third party
in the case of any must sue all of the partners. This must be done as a group, individual can also
or each partner can be held liable for the full amount. In the case of Shars Cars, LCC v. Elder, 97
p. 3d 724, if a third party sues a partner on a partnership, the partner who has been sued has the
right to demand that the other partners to be sued with him. Now, if the third party does not sue
all of the partners, the assets of the partnership cannot be used anywhere as part of satisfying the
judgment. Thus, as the judgment under the theory of joint liability, the partnership assets must be
exhausted before the creditors can reach the partners individual assets.2

2
Roger LeRoy Miller and Gaylord A. Jentz (rev.), Fundamentals of BUSINESS LAW Excerpted Cases, 2nd ed.
2010, p.536