Adrian and Brian intend to start a business selling second hand cars. Adrian and Brian decided to use a partnership, as business structure to operate their second hand car business. Consider the following scenarios.

Scenario 1

There is no agreement between Adrian and Brian as to their respective authority to contractually bind the partnership with regards to third parties:

Brian tells Colin that he is contracting on behalf of the partnership and purchases a second hand car from Colin for $10 000;

Brian contracts with Colin but does not disclose that he is acting on behalf of the partnership, and purchases a second hand car from Colin for $10 000;

Brian tells Colin that he is contracting on behalf of the partnership and purchases a leather jacket from Colin for $1 000;

Brian contracts with Colin but does not disclose that he intends to act on behalf of the partnership, and purchases a leather jacket from Colin for $1 000.

Scenario 2

There is an agreement between Adrian and Brian as to their respective authority to contractually bind the partnership with regards to third parties. In terms of this agreement, Brian may not purchase cars on behalf of the partnership if the price is in excess of $10,000:

Brian tells Colin that he is contracting on behalf of the partnership and purchases a second hand car from Colin for $20 000.

Brian contracts with Colin but does not disclose that he intends to act on behalf of the partnership, and purchases a second hand car from Colin for $ 20 000.

Adrian informs Colin of the agreement between Brain and Adrian. Brian tells Colin that he is contracting on behalf of the partnership and purchases a second hand car from Colin for $20 000.

Brian contracts with Colin but does not disclose that he intends to act on behalf of the partnership, and purchases a second hand car from Colin for $ 5 000.

Scenario 3

There is an agreement between Adrian and Brian as to their respective authority to contractually bind the partnership with regards to third parties. In terms of this agreement, Brian may purchase any item whatsoever on behalf of the partnership:

Brian tells Colin that he is contracting on behalf of the partnership and purchases a leather jacket for himself from Colin for $1 000.

Brian contracts with Colin but does not disclose that he intends to act on behalf of the partnership, and purchases a painting to put in the partnership office from Colin for $1 000.

Brian contracts with Colin but does not disclose that he intends to act on behalf of the partnership, and purchases a second hand car from Colin for $ 5 000.

Required:

Advise Adrian, Brian and Colin whether the partnership will or will not be bound and give reasons for your answer.