Authorised signatory for partnership firm

Respected members,

Can a Partnership Firm authorise an employee, e.g Business Development Manager to sign business agreements on behalf of the partnership firm? Would the provisions change if it is an unregistered Partnership firm?

Thanks & regards

Chandana

 

 

Replies (1)

As per section 18 of the Indian Partnership Act, 1932, partner to be agent of the firm i.e. legal position of a partner in a partnership firm is an agent.

The general rule is that an agent is not entitled to delegate his authority to another person without the consent of his principal. 'Delagatus non potest delegare' is the maxim which means that a person to whom authority has been given cannot delegate that authority to another.

Only partners being agents signing business agreements on behalf of the firm can bind the firm. No one else other than partners can bind the firm by such agreements. No difference whether registered or unregistered. An unregistered firm cannot sue on a contract with other party of the contract even though contract signed by a partner.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
15 October 2026
Senior Accountant

Continental Belting Pvt Ltd

Mumbai

B.Com

View Details
Company
ARTICLESHIP 07 October 2026
Article assistant

S.K.Bajpai & Co.

Noida

B.Com

View Details
Company
12 October 2026
AUDIT , ACCOUNTS AND TAXATION

KDSS

New Delhi

B.Com

View Details
Company
12 October 2026
Finance

I-Genext Consulting Private Limited

New Delhi

CA

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
20 September 2026
Semi Qualified CA

Navin & Associates

Mumbai

CA Inter

View Details
Company
08 October 2026
SALES TELECALLER

HIRE NOVA

Lucknow

Graduate (Any)

View Details
Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details