Nick and Susan decide to go into business, selling discounted merchandise through their Web site.They sign a partnership agreement that requires Susan to contribute $12,000 and Nick to contribute $8,000 in capital to start the firm. The agreement also states that only Susan will have the authority to bind the partnership in deals with third parties, but the agreement says nothing about the management of the firm or a division of profits. Without Susan's knowledge, Nick tells United Computer Products, Inc., that he represents the firm and signs a contract with United to buy hard drives for resale on their website. In the first year, their business makes a profit of $50,000. What are the partners’ rights with respect to the management of the firm? Is the partnership bound to the contract with United?
2007-07-10 00:08:28 · 4 answers · asked by SweetCheeks 2 in Business & Finance ➔ Small Business
Since Nick represented to United that he had the authority to sign the contract and United had no knowledge that he was unauthorized to act in such manner, the partnership is bound to the contract with United.
2007-07-10 18:04:05 · answer #1 · answered by dob367 3 · 0⤊ 0⤋
i'm no longer a hundred% particular yet i will say C. The corporation did no longer exist on the time the debt became incurred so hence should not be in charge. That policies out B and D. answer A does not make experience on the grounds that somebody could be in charge. on the grounds that all companions are "collectively and severally in charge" for partnership funds owed, the lender will come after the wealthy companion first. Now that I went for the duration of the logic i'm close to to a hundred% particular!
2016-09-29 10:37:26 · answer #2 · answered by ? 4 · 0⤊ 0⤋
Nick breached their contract that say only Susan can bind deals with third parties, which Nick just did.
2007-07-10 00:13:20 · answer #3 · answered by amie 2 · 0⤊ 0⤋
Their first mistake was creating a partnership. Horrible idea.
2007-07-10 02:25:08 · answer #4 · answered by jdkilp 7 · 0⤊ 0⤋