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Express and implied authority followup

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Express and implied authority followup

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by MikeLittle.
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  • January 7, 2018 at 9:57 am #427539
    humai
    Participant
    • Topics: 757
    • Replies: 248
    • ☆☆☆☆☆

    So if there was NO express clause stated in partnership agreement that “partnership business is to be limited exclusively to the SALE OF PETROL” then in this case Tam would have IMPLIED AUTHORITY for BUYING AND SELLING BICYCLES, right?

    January 7, 2018 at 2:24 pm #427564
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23321
    • ☆☆☆☆☆

    Not necessarily

    Would you consider it to be within the normal course of business for a petrol station to also be selling bicycles?

    Before you answer that, let me point out to you that, in the UK, petrol stations nowadays rarely sell just petrol

    Newspapers, flowers, car accessories, inflatable boats, charcoal, sandwiches, sweets, tobacco products are just some of the MANY items that you may be able to buy in a UK petrol station

    Are bicycles within the ordinary course of business? Would someone dealing with Tam be entitled to assume that Tam DID have implied authority as the owner of a petrol station?

    Tricky question!

    OK?

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