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Kylie, Tom, Spenser and Doug reached an agreement to start a restaurant business and operate it in the form of a partnership. Under the partnership
Kylie, Tom, Spenser and Doug reached an agreement to start a restaurant business and operate it in the form of a partnership. Under the partnership agreement, Kylie and Tom, who were the two famous chefs in town, were to serve as the managers of the business while Spenser and Doug were to invest in the business and receive profits. Spenser and Doug did not have the authority to conclude contracts on the partnership's behalf. One morning after touring a coffee machine factory, the factory manager, aware that Spenser and Doug were part owners of a restaurant business, offerred to sell them one of their best coffee brewing machines at a value below the market price. Spenser and Doug thought this was a great product to have for their restaurant and signed the contract. Kylie and Tom, when told about the contract, were not happy and want to challenge it. Can the sellers of the coffee machine succeed in holding the partnership liable for the contract? O Yes, because there is an absolute joint and several liability among partners for whatever actions they take. O No, because Spenser and Doug acted beyond authorisation. Yes, because the sellers dealt with Spenser and Doug as partners but did not know that they cannot enter into contracts on behlaf of the partnership. O No, because Spenser and Doug are mere investors and not partners
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