Asked by Mylene Salazar on Jul 04, 2024
Verified
Which of the following is true about the effect of purported partnerships?
A) Purported partners share profits of the business.
B) A purported partner does not have authority to make contracts for the partnership.
C) A purported partner is liable on contracts entered into by third parties on their belief that he is a partner.
D) A purported partner is not liable for the torts committed in the course of relationships entered by third parties who believed he was a partner.
Purported Partners
Individuals who appear to or claim to be partners in a business to the public, regardless of the legality of their partnership status.
Authority
The legal power or right given to an individual or entity to act on behalf of another or make decisions within certain parameters.
- Comprehend the implications of being a purported partner and the liability that arises from representations of partnership.
Verified Answer
ZK
Zybrea KnightJul 05, 2024
Final Answer :
C
Explanation :
A purported partner is liable on contracts entered into by third parties on their belief that he was a partner.He is liable for torts committed during the course of relationships entered by third parties who believed he was a partner.
Learning Objectives
- Comprehend the implications of being a purported partner and the liability that arises from representations of partnership.
Related questions
The ________ Is the Preferred Form of Business for Professionals ...
The Charging-Order Creditor Is a Lien Creditor and Is Entitled ...
John Is a Partner of Aegon Services,a Limited Liability Partnership ...
Individuals in a Valid General Partnership Are Not Personally Liable ...
Vern Is One of Three Partners in Waffles Food Truck ...