MEE Practice Questions - Multistate Essay Examination Exam

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A general partnership has three partners. One partner, without informing the others, signs a contract in the partnership's name to purchase inventory of a type the partnership regularly buys. Is the partnership bound?

No, because all partners must consent to contracts Yes, because each partner is an agent of the partnership for the purpose of its business and the act apparently carries on the business in the usual way Yes, but only if the other partners later ratify the contract No, because a partner has no authority to bind the partnership without express authorization

Correct Answer:

Yes, because each partner is an agent of the partnership for the purpose of its business and the act apparently carries on the business in the usual way

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