Giovanni and Leopelli were in a partnership together under the registered name "Adventures Unlimited." The partnership was formed for the purpose of providing guided adventure vacations for rich clients. A clause in their partnership agreement stated that neither party may incur expenses greater than $500 without the approval of the other partner. Giovanni entered into a contract in the name of Adventures Unlimited with Elvira Sails Inc. (a corporation engaged in selling and leasing boats) to rent a large cabin cruiser for three months, at a rent of $10 000 per month. He signed the rental agreement in his own name, paid a deposit of $1000 by a cheque drawn on the partnership bank account, took delivery of the cruiser, and has not been seen since. Elvira Sails Inc. sued Leopelli.