Hugh, Marina and Winnie are partners in a successful retail carpet business called Tapestry Galore. They have a partnership agreement which notes that the partners should not enter into any contract with Mac, because the partners believe that Mac is not trustworthy. Furthermore, the agreement states that Winnie is a sleeping partner.

Mac approaches Hugh and offers to sell him various carpets at a very low rate. To expedite the matter, Mac sends some samples to Hugh to show him the quality of the carpets. After examining the product, Hugh is impressed and ask Mac to supply $50 000 worth of merchandise to the business and he asks Mac to send the invoice to Tapestry Galore. Mac is not aware of the terms of the partnership contract and he does not know that Winnie is a partner.

When Marina receives the merchandise with the invoice, she is unhappy with the product because, even though the carpets were good value, she does not believe that they would sell in the store. She directly contact Mac telling him that he needs to pick his merchandise from the partnership premises because the contract is invalid and Hugh exceeded his authority when signing the contract.

Advise Mac.