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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Partners authority and liability
Hello
I want to ask that whether I am right in the following sentences? If not then please correct me in cases where am I wrong
1) If partner have actual authority then firm (i.e all individual partners) is liable , otherwise only individual partner is liable
2) If transaction relate to business carried on by firm, then firm is liable, otherwise only individual partner is liable
3) If other party know that the partner had no authority then firm is NOT liable, only individual partner is liable
4) If other party know that partner was a partner then firm is liable, otherwise only individual partner
Thanks
They are all ok but, with the first one, you could have re-worded it to read …
“A partner has the authority to bind the firm and the partners for the purpose of the business of the firm”
OK?