Q: What are the extension of partner's implied authority ?

Ans: The partners in a firm may by contract between the partners,  extend the implied authority of any partner . Therefore if a partner exceeded his actual authority,  but other partners ratify his act ,by contract , the firm shall be liable for such act.

Example: 

Sajid, Majid and Wajid are partners in a firm.

By an agreement, they decided that no partner would have authority to sell goods of the firm above the value of Rs. 50,000/- without the consent of other partners.

Sajid sold goods worth Rs. 70,000/- on credit without consulting other partners. The customer defaulted.

Sajid has to compensate the firm for loss caused due to him exceeding his authority if not ratified. 

However, Majid and Wajid may ratify his act and in that case the firm shall bear the loss.

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