Question

What is the implied authority of Karta?

Answer 1

1. In a joint family firm, only Karta has the implied authority to enter into a contract for debts and pledge the property of the firm for the ordinary purpose of the business of the firm.

2. The Karta is the senior-most male member of the family. The members of the family have full faith and confidence in Karta. Only Karta is entitled to deal with outsiders. But other members can deal with outsiders only with the permission of Karta.

3. Except for the Karta, the liability of all other members is limited to their shares in the business. Karta is not only liable to the extent of his share in the business but his separate property is equally attachable and the amount of debt can be recovered from his personal property.