Under Section 19 of the Indian Partnership Act, 1932,

Solution

Section 19 of the Indian Partnership Act, 1932, provides that each partner is an agent of the firm for purposes of partnership business. A partner's act within the actual/apparent scope of the partnership business binds the firm even if done without authorization (doctrine of apparent authority). However, acts outside partnership scope or expressly forbidden by partnership agreement don't bind the firm. Partners owe implied authority based on partnership business nature a partner in a trading firm can purchase goods on credit, but a partner in a professional firm may lack such authority. Other partners can be bound by contracts made by one partner within authority, creating firm's joint liability toward third parties acting in good faith.