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A and B were partners in the business of manufacturing of beauty products and toiletries. B was a sleeping partner. A clause in the Partnership deed prohibited partners from buying and selling beauty products of a particular brand X on behalf of the firm, as it was hazardous to customers. A, the acting partner ordered the delivery of certain beauty products of brand X and thereafter, sold the products to Mr. Y for Rs. 20,000. When the customer used the product, he suffered from skin burns. He sued B and claimed the amount of Rs. 20,000 from B, the sleeping partner. In this case –
B is also liable for the acts of A.
The act of A is within his implied authority and is binding on the firm
Only A, the acting partner is liable for his acts
Both (a) and (b)
Mercantile Credit Co. Ltd. Vs. Garrod –In this case, B is also liable for the acts of A. The act of A is within his implied authority and is binding on the firm
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