Question
Jansen and Johnson operated a grocery store as partners. Jansen told Johnson not to buy a certain product because it was not selling well. Johnson
Jansen and Johnson operated a grocery store as partners. Jansen told Johnson not to buy a certain product because it was not selling well. Johnson disregarded Jansen's request and bought a large quantity of the product. Jansen refused to pay the bill, claiming that her orders had been disregarded. Was the partnership obligated to pay for the product?
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Yes He is buying the product for the business so the partnership is liable for the cost It clearly indicates in The Partnership Act 1932 In this act it clearly mentioned that every partner is liable with all other partners for every deal in a partnership If you make a bad deal by signing a contract to pay an inflated price to a supplier the partnership will be forced to accept the deal This is one of the potential drawbacks of the partnership that other partners are bound by contracts signed by each other on behalf of the partnership Therefore it is very important to choose those partners ...
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Introduction To Business Law
Authors: Jeff Rey F. Beatty, Susan S. Samuelson
3rd Edition
978-0324826999, 0324826990
