Q: Elaborate partner's authority in an emergency ?

Ans: 

Partner' Authority in an emergency: 

A partner has authority, in an emergency, to do all such acts for the purpose of protecting the firm from loss as would be done by a person of ordinary care, in his own case acting under similar circumstances.

Example: 
Wajid, Yasir and Zahid are partners in a firm.

By an agreement, they decided that the partner would have authority to sell goods of the firm above the value of Rs. 50,000/ without the consent of other partners.

Owing to a sudden slump in the market, the prices crashed, Yasir, in order to save the firm from loss, sold all the stock worth Rs. 5,000,000 without consulting any other partner.
Such act would bind the firm.

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