Ward Parkway was a wholly owned subsidiary of Kroh Brothers Development Company. Ward Parkway was also the
Question:
Ward Parkway was a wholly owned subsidiary of Kroh Brothers Development Company. Ward Parkway was also the general partner in West Tech, a limited partnership. Boatmen’s Bank made a $1.3 million loan to West Tech but deposited it in the Kroh Brothers Development Company accounts. Section 620.60(2) of the ULPA states that n act of a partner that is not apparently for the carrying on of the business of the partnership in the usual way does not bind the partnership unless authorized by the er partners. No such authority was forthcoming from any partner when Jacob D. Mondahein executed the note for the loan as vice president of West Parkway. Mondahein also directed Boatmen’s to put the money in the Kroh Brothers account. Should Boatmen’s be able to collect its money from West Tech? Why or why not? (West Tech, Ltd. v. Boatmen’s First National Bank of Kansas City, 882 F. 2d 323)
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