Asked by Khurram Khalid on May 23, 2024
Verified
The actual express authority of partners must be specifically set forth in the partnership agreement.
Express Authority
Explicit permission granted to an agent by a principal to perform certain acts or transactions.
Partnership Agreement
A legally binding contract that outlines the terms of a partnership, such as division of profits and losses, responsibilities of partners, and procedures for resolving disputes.
- Recognize the degree of authority partners have in managing partnership affairs and in binding the partnership to third parties.
Verified Answer
SP
Surabhi PatelMay 30, 2024
Final Answer :
False
Explanation :
The actual express authority of partners does not need to be specifically set forth in the partnership agreement; it can be granted through the partnership agreement, but it can also be established through the actions and agreements of the partners.
Learning Objectives
- Recognize the degree of authority partners have in managing partnership affairs and in binding the partnership to third parties.