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A, B and C are partners in a firm manufacturing autoparts. Their firm is not registered. In order to increase the earnings of the B decided to use low quality raw materials without the knowledge of A and C, As a result many acidents were reported by the consumers and a case has been filed against the firm.
(a) Is this wrong act of B is binding on the A and C?
(b) State the feature related to this.
( c ) Can consumers file case on unregisterd firm?
(d) Can A and C file case on B?

1 Answer

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(a) Yes, the wrong act of B is binding on A and
(b) Mutual Agency
( c ) Yes, outsiders can file a case on unregistered firm
(d) No, partners of unregistered firm can not file can not file a case on each other.

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