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Sir I was asking you that here does Sam has express authority for borrowing money or does he has implied authority for borrowing money? This was my question.
You replied Why would he need implied authority when he has express authority?
So you are saying na that he has express authority for borrowing money.
My only question is that can you point me where in the scenario its mentioned or its evident that Sam has has express authority for borrowing money because I could not get it.
This was the scenario
Ham, Sam and Tam formed a partnership to run a petrol station. The partnership agreement expressly stated that the partnership business was to be limited exclusively to the sale of petrol.
In January 20X8 Sam received £10,000 from the partnership’s bank drawn on its overdraft facility. He told the bank that the money was to finance a short-term partnership debt but in fact he used the money to pay for a round-the-world cruise. In February 20X8 Tam entered into a £15,000 contract on behalf of the partnership to buy a stock of bicycles, which he hoped to sell from the garage forecourt.My question was that for the purpose of borrowing money, which authority Sam has? Express authority or Implied authority?
I’ve just quoted to you your post in which you said that he had express authority
I can only interpret your questions as you have written them – a fine example of the literal rule! Na?
Sir please tel me just this that which authority Sam had for borrowing money? Express authority OR Implied authority ?
Sam clearly does not have express authority
As a partner in a petrol station partnership, Sam has the implicit power to do all such things as are necessary for the running of the partnership
That includes the borrowing of money on the firm’s business
The bank is protected because the bank is entitled to believe that Sam has the necessary authority to borrow money for the use of paying the firm’s creditors so the firm is liable to repay the money to the bank
But Sam himself is liable to repay to the firm that money that he has obtained by deceit and which he has not used in the firm’s business
OK?
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