Which of the following is true ........

Indian Partnershoip Act (IPA) 1930 Right and Duties etc

Which of the following is true?

The firm is also liable where a partner commits fraud in the ordinary course of the business of the firm

Where the misconduct of a partner has nothing to do with the business of the firm or is his private affair, the firm is not liable.

Both (a) and (b)

Neither (a) nor (b)

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Explanation:

Section 26 of Partnership Act –
26. Liability of the firm for wrongful acts of a partner. Where, by the wrongful act or omission of a partner acting in the ordinary course of the business of a firm, or with the authority of his partners, loss or injury is caused to any third party, or any penalty is incurred, the firm is liable therefor to the same extent as the partner.