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Representation

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Representation

  • This topic has 3 replies, 2 voices, and was last updated 2 years ago by MikeLittle.
Viewing 4 posts - 1 through 4 (of 4 total)
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  • February 14, 2023 at 3:13 pm #678881
    krrish2005
    Participant
    • Topics: 138
    • Replies: 229
    • ☆☆☆

    Sir any text we study states that the representation must be made to the third party

    My doubt:
    Can a third party rely on representation made by an agent to another third party ???
    If we see s14 pa 1890 states that :
    …..whether the representation has or has not been made to the person so giving credit
    I am not able to understand this.

    February 14, 2023 at 3:50 pm #678886
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23352
    • ☆☆☆☆☆

    Section 14 (1) states:

    “Every one who by words spoken or written or by conduct represents himself, or who knowingly suffers himself to be represented, as a partner in a particular firm, is liable as a partner to any one who has on the faith of any such representation given credit to the firm, whether the representation has or has not been made or communicated to the person so giving credit by or with the knowledge of the apparent partner making the representation or suffering it to be made.”

    What this is saying (and you haven’t given me the full quote!) is that it doesn’t matter who gives the impression that the person is a partner. If the person allows him/herself to be represented as a partner and, as a result, a third party gives credit, then the ‘partner’ is as liable as if he / she were a partner

    OK?

    February 14, 2023 at 3:57 pm #678887
    krrish2005
    Participant
    • Topics: 138
    • Replies: 229
    • ☆☆☆

    Got it sir
    And sir the previous one’s answer?
    Can a third party rely on representation made about agent’s authority to another third party?

    February 14, 2023 at 7:02 pm #678909
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23352
    • ☆☆☆☆☆

    I wouldn’t have thought so. But that’s not what Section 14 is referring to (if that’s what you think)

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