Question

LEGAL PRINCIPLE: Every partner is liable, jointly with all the other partners and also severally, for all acts of the firm done while he is a partner.

FACTUAL SITUATION: A and B started a partnership firm for providing vehicle repair services. C approached the firm for getting his car repaired and noticed that only B was present in the office. C informed the problem and B started repairing the car. While B was repairing, he filled petrol instead of oil in the engine. As a consequence, a small blast occurred and damaged the car. Now, C sued both A and B for the damage so caused. Decide. 

DECISION:

Options

• Both liable since B was authorised to carry out the work of the firm.

• A is not liable since A has not authorised B to do something which was not for the benefit of the firm.

• A is not liable since it was B's fault and for that only B can be held liable.

• A is liable since it was negligence on his part that he was not resentful in the office when C came.

Answer 1

Both liable since B was authorised to carry out the work of the firm.

Explanation:

C can sue both A and B because A and B were running a partnership firm and every partner is jointly liable for the acts of the firm.