Acorn and Bean were general partners in a farm machinery business. Acorn contracted, on behalf of the
Question:
Acorn and Bean were general partners in a farm machinery business. Acorn contracted, on behalf of the partnership, to purchase 10 tractors from Cobb Corp. Unknown to Cobb, Acorn was not authorized by the partnership to make such contracts. Bean refused to allow the partnership to accept delivery of the tractors, and Cobb sought to enforce the contract. Cobb will:
a. Lose, because Acorn’s action was beyond the scope of Acorn’s implied authority
b. Prevail, because Acorn had implied authority to bind the partnership
c. Prevail, because Acorn had apparent authority to bind the partnership
d. Lose, because Acorn’s express authority was restricted, in writing, by the partnership agreement AppendixLO1
Step by Step Answer:
Anderson's Business Law And The Legal Environment
ISBN: 9780324638189
20th Edition
Authors: David P Twomey, Marianne M Jennings, Ivan Fox