Themis Essay 5307

Question 1

A partnership is an association of

Answer 1

two or more persons to carry on a for-profit business as co-owners.

Question 2

The key test to ascertain whether a business arrangement is a partnership is

Answer 2

whether there is a sharing of the profits from the business.

Question 3

If there is an agreement to share profits in a business arrangement, then

Answer 3

such arrangement is generally presumed to be a partnership and the persons who share in the profits are partners.

Question 4

A partnership is liable for a patner’s

Answer 4

tortious acts committed in the ordinary course of the partnership’s business or with partnership authority, whether actual or apparent.

Question 5

Apparent authority is the power of an agent to act on behalf of a principal based only on

Answer 5

the reasonable belief by a third-party, from the principal’s conduct, that the principal granted such power to the agent.

Question 6

Actual authority is an agent’s power to

Answer 6

act on behalf of a principal, because such power was either expressly or impliedly conferred.

Question 7

Express actual authority occurs when

Answer 7

a principal directly tells an agent that they have the authority to take certain actions.

Question 8

Implied actual authority is

Answer 8

the authority that is based on the agent’s reasonable understanding of the principal’s instructions.

Question 9

Each partner in a partnership is

Answer 9

jointly and severally liable for all partnership obligations.

Question 10

Even though a partner may be personally liable for a partnership obligation,

Answer 10

a partnership creditor generally must exhaust the partnership’s assets before levying on the partner’s personal assets.