Question
Based on National Biscuit Co. v. Stroud Freeman as a general partner with Stroud, with no restrictions on his authority to act within the scope
Based on National Biscuit Co. v. Stroud
Freeman as a general partner with Stroud, with no restrictions on his authority to act within the scope of the partnership business so far as the agreed statement of facts shows, had under the Uniform Partnership Act 'equal rights in the management and conduct of the partnership business.'...Stroud, his co-partner, could not restrict the power and authority of Freeman to buy bread for the partnership as a going concern, for such a purchase was an 'ordinary matter connected with the partnership business,' for the purpose of its business and within its scope.
Why do you think that under partnership law, a general partner is held liable for the business decisions and transactions--in the ordinary course of business--of his or her partners?
You should examine the issue both from the perspective of the partners and from the perspective of third parties (such as creditors) who regularly transact with the partnership.
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