Assume Sef and Phi do set up their partnership. In the partnership agreement, there is a limit of $20,000 that each partner can spend or commit without the agreement of the other partner.

One day, Sef is upset that the van keeps breaking down. He goes to a dealer and notices they have a special on new vans. Sef signs a contract to purchase a new van for $50,000 and to pay for it by a loan provided by a finance company associated with the car dealer at an interest rate of 25% p.a. Sef tried to call Phi before he signed the contract but couldnt get through. Are both partners liable under the contract?