Adam, Bob, and Cathy are planning to form a partnership to create a business that will retail cell phones in a new shopping center just completed in their city. They have been able to reach agreement on many issues, but Cathy is still concerned that Adam might become a little irresponsible and use his position as a partner and the partnership's name in business transactions that Cathy would not approve for the partnership. Cathy feels that Adam has superb marketing skills that will benefit the business, but she wonders what he might do in regard to transactions with third parties on behalf of the partnership.

Required
Prepare a memo to Cathy discussing each partner's rights to engage in transactions on behalf of the partnership and how a partnership can restrict a partner's authority to engage in specific types of transactions.