09-04-2007, 03:26 PM
<b>Answer of (a)-</b>
<b>Implied Authority-</b>
Implied Authority has neither given in writing nor in verbal it is implied because of the nature of job or task...
Simply What is expected from the person of his position for example, If a person is involved in general administration tasks of a company his implied authority is to make contracts for all administrative nature of tasks see Panorama Development Case where a secretary of company âAâ contracted to other company âBâ to get cars on rent to pick the customers of company âAâ he then used cars for his own benefits. Later Company âBâ claimed the amount from company âAâ and company âAâ refused to pay for it on the grounds that He (the Secretary) has no authority to make such contracts on companyâs behalf then court of law held that <b> He the secretary of Company âAâ has implied authority to make such contracts on behalf of company âAâ because administrative nature tasks are usually come under the authority of companyâs secretary </b>..
Implied Authority can be classified as
<b>Implied Customary Authority-</b>
What is implied by the custom of particular trade or business
<b>Implied Usual Authority-</b>
What is expected from the person of his position and knowledge. Simply what come under his usual authority
Regarding your query that A has borrowed Rs 50000 from B by giving a promissory note in his indivdual capacity has two options 1)The loan has been taken in course of business of agency. 2)The loan has not been taken in course of business of agency. If it has taken in course of business of agency then Aâs firm will be liable to it and if it has not been taken in course of business of agency then the firm would not be liable for it, but if âBâ knows that âAâ is a partner in a firm and âBâ also knows that âAâ has usual authority to make such contracts on behalf of Partnership then âBâ can recover amount from the companyâ¦
<b>Answer of (b)-</b>
The Government banned on hunting not on Coat that are prepared from previous huntings and therefor 'B' has enforceable rights and
'B' can sue to recover coat from 'A' as it was simple offer and acceptance not Invitation and Offer...
Regards,
Muhammad Amir
<b>Implied Authority-</b>
Implied Authority has neither given in writing nor in verbal it is implied because of the nature of job or task...
Simply What is expected from the person of his position for example, If a person is involved in general administration tasks of a company his implied authority is to make contracts for all administrative nature of tasks see Panorama Development Case where a secretary of company âAâ contracted to other company âBâ to get cars on rent to pick the customers of company âAâ he then used cars for his own benefits. Later Company âBâ claimed the amount from company âAâ and company âAâ refused to pay for it on the grounds that He (the Secretary) has no authority to make such contracts on companyâs behalf then court of law held that <b> He the secretary of Company âAâ has implied authority to make such contracts on behalf of company âAâ because administrative nature tasks are usually come under the authority of companyâs secretary </b>..
Implied Authority can be classified as
<b>Implied Customary Authority-</b>
What is implied by the custom of particular trade or business
<b>Implied Usual Authority-</b>
What is expected from the person of his position and knowledge. Simply what come under his usual authority
Regarding your query that A has borrowed Rs 50000 from B by giving a promissory note in his indivdual capacity has two options 1)The loan has been taken in course of business of agency. 2)The loan has not been taken in course of business of agency. If it has taken in course of business of agency then Aâs firm will be liable to it and if it has not been taken in course of business of agency then the firm would not be liable for it, but if âBâ knows that âAâ is a partner in a firm and âBâ also knows that âAâ has usual authority to make such contracts on behalf of Partnership then âBâ can recover amount from the companyâ¦
<b>Answer of (b)-</b>
The Government banned on hunting not on Coat that are prepared from previous huntings and therefor 'B' has enforceable rights and
'B' can sue to recover coat from 'A' as it was simple offer and acceptance not Invitation and Offer...
Regards,
Muhammad Amir
