Bowen and Campbell are partners in operating a store. Without consulting Bowen, Campbell enters into a contract

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Bowen and Campbell are partners in operating a store. Without consulting Bowen, Campbell enters into a contract for the purchase of merchandise for the store. Bowen contends that he did not authorize the order and refuses to take delivery. The vendor sues the partners for the contract price of the merchandise. Will the partnership have to pay? Why? Does your answer differ if Bowen and Campbell are partners in a public accounting firm?

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...
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Fundamental Accounting Principles Volume II

ISBN: 978-1259066511

14th Canadian Edition

Authors: Larson Kermit, Jensen Tilly

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