Agency/Partnership Essay Misses

Question 1

Partnership Formation

Answer 1

1. Subjective intent not required, only intent to carry on as co-owners
2. Can be implied from conduct
3. Sharing in profits raises presumption of partnership

Question 2

Partnership Authority

Answer 2

Every partner is an agent of the partnership and his acts will bind it IF the partner acted with authority.

Question 3

Partner Actual Authority

Answer 3

Ordinary business decisions - majority agreement
Special business decisions - unanimous

Question 4

Partner Apparent Authority

Answer 4

Authority third party reasonably believes a partner has based on being a partner.

Binding UNLESS
1. no actual authority AND
2. third party knew partner had no authority

Question 5

Partnership Liability

Answer 5

Partners are jointly and severally liable for all obligations of the partnership

UPA: Partners only liable for contract obligations

Judgment creditor must exhaust partnership assets first