Wednesday, June 10, 2009

Practical Problems_Partnership Act_11

‘A’ and ‘B’ carry on motor repair business in partnership. Under the deed of partnership, ‘A’ has no power of borrowing money. ‘C’ a creditor, knowing nothing about restrictions on the power of ‘A’ for borrowing money, lends ‘A’ money for the use of the firm. Is the firm liable to ‘C’ for repayment of the money lent by him to ‘A’. Refer to statutory provisions and decided cases.

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