A partner who acts beyond his actual authority in dealings with third parties will be liable to the other partners under the notion of "breach of warranty of authority."

Question

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The concept of "breach of warranty of authority" applies when an agent misrepresents their authority to third parties, not within the context of partners' liabilities to each other. In partnerships, the issue would typically be addressed under the principles of partnership law, which may involve breach of the partnership agreement or fiduciary duties, rather than a "breach of warranty of authority."

A Partner Who Acts Beyond His Actual Authority in Dealings