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In the absence of a contrary usage, the implied authority of a partner does NOT empower him to:
ASell the firm's goods in the usual way
BPay the firm's debts
CAcquire or transfer immovable property, submit a dispute to arbitration, or enter into partnership on the firm's behalf
DBuy goods for the firm
Answer & Solution
Correct answer: C. Acquire or transfer immovable property, submit a dispute to arbitration, or enter into partnership on the firm's behalf
Section 19(2) lists acts outside implied authority, including acquiring/transferring immovable property, submitting disputes to arbitration, opening a bank account in his own name, compromising claims, and entering into partnership for the firm.
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