Q: Is actual authority mentioned in rhe contractual agreement ?
Ans: Actual Authority in partnership: The Authority of each partner to take decisions for the business, and enter into the transactions with other parties, will be specified in partnership agreement.
Since the partnership agreement is a contract, its terms are the terms of contractual agreement between the parties.
For instance: Harish is in trading business of partnership with luminous traders.
On the first day, Harish ordered for 500 bulbs with Daksh, a wholesale of electric products. Harish had actual authority to enter into the contract with Daksh.
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