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    Question

    When a partner exercises his authority in an emergency

    and protects the firm from loss then such act _____.
    A Shall bind the firm. Correct Answer Incorrect Answer
    B Shall not bind the firm. Correct Answer Incorrect Answer
    C Shall bind only the partner exercising authority. Correct Answer Incorrect Answer
    D Shall bind the designated partners. Correct Answer Incorrect Answer
    E Shall bind only the active partners and not sleeping partners. Correct Answer Incorrect Answer

    Solution

     Partnership Act   S. 21 PARTNER'S AUTHORITY IN AN EMERGENCY.   A partner has authority, in an emergency, to do all such acts for the purpose of protecting the firm from loss as would be done by a person of ordinary prudence, in his own case, acting under similar circumstances, and such acts bind the firm.

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