External Affairs of a Partnership

Question 1

The partnership is bound by contracts entered into by partners so long as the partners have________

Answer 1

authority

Question 2

Express authority

Answer 2

Expressly given and communicated between the partnership and the partner in question

Question 3

Where can express authority come from?

Answer 3

1. The partnership agreement
2. A statement of authority
3. A vote of the partners

Question 4

Implied authority

Answer 4

Exists based on the partner’s reasonable belief that an action is necessary to carry out express authority

Question 5

Apparent authority

Answer 5

Based on communication between the partnership and a third party

Question 6

Share of liability for other partners under a contract or when a partner commits a tort within the scope of the partnership

Answer 6

Partners are jointly and severally liable

Question 7

Is an incoming partner personally liable for any of the partnership’s obligations that are inccured before they joined the partnership?

Answer 7

No