Agency/Partnerships

Question 1

Apparent Authority

Answer 1

Apparent authority is when the third party reasonably believes the agent is acting with the autority enter into this contract. This can be accomplished by the principle holding out the agent as being about make these contracts or it would be reasonable to infer through its conduct

Question 2

Authority of Agent

Answer 2

An agent has actual authority from either express consent from the principle to enter into this type of contract or implied consent through prior dealings or from conduct.

Question 3

Contract Liability of the Partnership

Answer 3

Each partner is an agent of the partnership, therefore the actions in the ordinary course of business to carry on the partnerships’s business bind the partnership unless. In a general partnership the partners are personally liable to the contracts entered into by a partner or agent that either actual or apparent authority. Creditors must first go after the assets of the GP before going after the partners indivudally. The partners are joint and severally liable to the debts of the partnership.

Question 4

Dissolution of the Partnership

Answer 4

In a at will partnership if a partner wants to dissolve the partnership the partnership must dissolve and start winding up and liquidated the assets . After all assests are sold off the partnership is termianted.

Question 5

General Partnership Formation

Answer 5

two or more co-owners in a business for profit. Ways to show this in the facts are through day to day responsibilities sharing in profits and loses

Question 6

Partner Duty of Loyalty

Answer 6

Partners have a duty of loyalty to the general partnership to not engage in self dealing and ursurp the interests of the partnership. Act in good faith and fairly towards other partners the duty to account.