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when entering into the contract if third party knows a partner has no express authority but entered into contract, then firm is not liable to 3rd party, right ?
No, not correct. If the third party is aware that the partner is prevented from entering such a contract then only that partner would be liable
But it’s not up to the third party to make enquiry
So any third party is safe to assume that any partner has the apparent authority to enter into contracts as agent on behalf of the firm
Your post has a misguided emphasis “if third party knows a partner has no express authority” should read “if third party knows a partner has neither express nor implied authority ….”
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