What is implied agency in partnership?

Implied Agency — Implied agency in partnership means that every partner is automatically considered an agent of the other partners and of the firm, even without any express authorization. Each partner can bind the other partners and the firm by his acts performed in the normal course of business.

The key points of implied agency are:

1. Partnership business can be carried on by all the partners or by any of them acting on behalf of others.

2. The act of one partner, done in the ordinary course of business, is treated as the act of the firm.

3. Each partner is liable for acts performed by other partners on behalf of the firm.

4. One partner can bind the others by his acts performed in the normal course of business.

Implied agency arises out of the relationship of mutual trust and confidence among the partners and is one of the essential features of partnership.