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Kate is a co - partner in a restaurant with partners Will and Sue. Kate buys vegetables and fruit for the restaurant at ABC Wholesale.
Kate is a copartner in a restaurant with partners Will and Sue. Kate buys vegetables and fruit for the restaurant at ABC Wholesale. Kate signs the bill for the produce, agreeing to payment terms in her own name. A month later, Will and Sue get into a big argument and close down the restaurant. A short time later, Kate receives a letter from ABC Wholesale requesting payment. Can ABC Wholesale recover payment from Kate?
a Yes, but only because the restaurant is no longer in business.
b Yes, ABC Wholesale can recover from Kate regardless of whether the restaurant is still in business.
c Only if ABC Wholesale can establish that recovery cannot be obtained from Will and Sue.
d No because regardless of whether ABC Wholesale was aware of it Kate was acting on behalf of the partnership.
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