alleryUnder Section 20, a restriction on a partner's implied authority binds a third party only if:
AIt is published in a newspaper
BThe third party knows of the restriction
CThe restriction is registered
DThe firm is a trading firm
Answer & Solution
Correct answer: B. The third party knows of the restriction
A restriction on implied authority is effective against a third party only where he has notice of it (or does not know he is dealing with a partner).
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