PLEASE ANSWER ALL CORRECTLY AND NO NEED TO EXPLAIN

40. Every partner is an agent of the firm for the purpose of the business of the partnership. The situations where an act of a partner can bind the firm and other partners are:-

1. The act done is the type of business that is carried out by the firm;
2. It is carried on in the usual way;

(iii)The third party must know or believe that the person with whom he has entered into the transaction is a partner;

(iv)The third party must not know that the partner has no authority from the other partners to act on behalf of the firm.

1. (i)
2. (i) and (ii)
3. (i) and (ii) and (iii)
4. (i) and (ii) and (iii) and (iv)

41. Actual Authority can be classified into 2 type of actual authority:

(i) Express actual authority

(ii) Implied actual authority

(iii)Usual or apparent authority

(iv)Actual authority

1. (i) and (ii)
2. (ii) and (iii)
3. (iii) and (iv)
4. (i) and (ii) and (iii) and (iv)

42. With regard to a contractual liability of a partner Section 11 PA states that Every partner in a firm is not liable jointly with the other partners for all debts and obligations of the firm incurred while he is a partner; and after his death his estate is also not severally liable in a due course of administration for such debts and obligations, so far as they remain unsatisfied but subject to the prior payment of his separate debts.

1. True
2. False

43. Section 11 PA therefore states that every partner is liable jointly with the other partners for all debts and obligations by the firm incurred while he is a partner. After his death, his estate will be severally liable for such debts and obligations. This means that, in respect of a partners liability for contract entered into by the firm there are two types of liability involved. Which of the statements below mentioned are correct:-

1. Joint liability means each and every partner in the firm is liable for the debts and obligations of the firm incurred while he is a partner. This means that a third party may take legal action against all partners jointly or one so as to recover debts, but he can only bring one action, not several. However, if a third party omits to include one or more of the partners in the legal action he would lose his right of action against them.
2. Nevertheless, the partner sued may request from the court for an order to direct the other partners not named in the action to jointly contribute towards the payment of the debt or he may claim an indemnity from his partners (s.26 (b) PA). If it so happen the partner named in the action is a bankrupt, third party will lose the right to recover his debts for good. Therefore, it advisable to bring an action against a partnership in the name of the firm. This way all partners are assumed to be included in the action.
3. Several Liability - means in situations where a creditor had taken an action against all surviving partners but failed to recover the full amount of the debts owed, he may commence a legal proceeding against a

deceased partner. The deceased estate will be severally liable depending on the remaining sum available after the executors of the estate have settled his personal debts.

(iv) Common Liability - means in situations where a creditor had taken an action against all surviving partners but failed to recover the full amount of the debts owed, he may commence a legal proceeding against a

deceased partner. The deceased estate will be severally liable depending on the remaining sum available after the executors of the estate have settled his personal debts.

1. (i) and (ii)
2. (i) and (ii) and (iii)
3. (i) and (ii) and (iii) and (iv)
4. (i) and (iii) and (iv)

44. With regard to tortious liability Section 12 PA provides that Where, by any wrongly act or omission of any partner acting in the ordinary course of the business of the firm or with the authority of his co-partners, loss or injury is caused to any person not being a partner in the firm or any penalty is incurred, the firm is liable therefore to the same extent as the partner so acting or omitting to act.

1. True
2. False