Restrictions on Authority of a Partner
Restrictions are governed by Contract and by the Partnership Act
The partners may by contract extend or restrict the implied authority of any partner.
Under the Partnership Act in the absence of any usage of trade to the contrary, the implied authority of a partner does not empower him to do the following acts:
- Submit a dispute relating to the business of a firm to arbitration
- Open a bank account in his own name
- Compromise or relinquish any claim of the firm
- Withdraw a suit or proceeding on behalf of the firm
- Admit any liability in a suit or proceeding against the firm
- Acquire immovable property on behalf of the firm
- Transfer immovable property belonging to the firm, or
- Enter into partnership on behalf of the firm.