Asked by Avery Villa on May 29, 2024
Verified
Don is a partner of the firm Shaw Associates,which offers recruitment services.Don entered into a contract with Bradman & Sons to sell the land on which the partnership business is situated for $85,000.Is this contract enforceable?
A) Yes,because Don has apparent authority to enter into contract with Bradman & Sons.
B) No,because Don has only express authority not actual authority.
C) Yes,because Don,being a partner,has implied authority to enter into contract.
D) No,because Don does not have the power to convey the partnership's real property.
Real Property
Land and any permanent structures attached to it, such as buildings, homes, and other fixtures.
Apparent Authority
Apparent Authority refers to a situation where a third party reasonably believes that an agent has the authority to act on behalf of another, even if such authority has not been explicitly granted.
Enforceable Contract
A legally binding agreement between parties that can be enforced by law if not fulfilled.
- Acquire knowledge about the types of partnership authority (express, implied, apparent) and the scope of management powers.
Verified Answer
BG
Britni GurganusJun 01, 2024
Final Answer :
D
Explanation :
A partner has implied and apparent authority to sell real property if a partnership sells real property in the usual course of the partnership business.Such would be the case with the partner of a real estate investment partnership that buys and sells land as its regular business.
Learning Objectives
- Acquire knowledge about the types of partnership authority (express, implied, apparent) and the scope of management powers.