Deck 6: Sole Proprietorship, Agency, and Partnership

Question 1

Without Brown's knowledge,Jones,who frequently purchased lumber on Brown's behalf,purchased a large quantity of plywood from Smith as agent for Brown.Jones later advised Brown of the purchase.
As an agent,Jones must make certain that his principal is in existence at the time the contract is negotiated;otherwise,he would be liable for breach of warranty of authority.

Answer 1

True

Question 2

Adrienne hired an agent to sell a quantity of furniture that she owned.She instructed the agent to sell the furniture without disclosing her identity as owner.The agent eventually sold the furniture to Simple.Adrienne then decided not to deliver the furniture.
Adrienne's instructions required the agent to sell the goods as agent for an undisclosed principal.

Answer 2

True

Question 3

Without Brown's knowledge,Jones,who frequently purchased lumber on Brown's behalf,purchased a large quantity of plywood from Smith as agent for Brown.Jones later advised Brown of the purchase.
If Brown had died before the contract was negotiated by Jones,the purchase agreement would be unenforceable,because the principal did not exist at the when the agreement was made.

Answer 3

True

Question 4

Without Brown's knowledge,Jones,who frequently purchased lumber on Brown's behalf,purchased a large quantity of plywood from Smith as agent for Brown.Jones later advised Brown of the purchase.
Brown may ratify the contract made by Jones,if he wishes to do so,provided that he could have made the agreement himself at the time that the agreement was made by Jones.

Question 5

Without Brown's knowledge,Jones,who frequently purchased lumber on Brown's behalf,purchased a large quantity of plywood from Smith as agent for Brown.Jones later advised Brown of the purchase.
If Brown had died,Jones would be liable to Smith on the basis of Jones's implied warranty that he had authority to negotiate the contract on behalf of a principal that existed.

Question 6

Without Brown's knowledge,Jones,who frequently purchased lumber on Brown's behalf,purchased a large quantity of plywood from Smith as agent for Brown.Jones later advised Brown of the purchase.
If Brown was bound by the contract that he had not authorized Jones to make,Brown would be entitled to take legal action against Jones for any loss Jones suffered.

Question 7

Adrienne hired an agent to sell a quantity of furniture that she owned.She instructed the agent to sell the furniture without disclosing her identity as owner.The agent eventually sold the furniture to Simple.Adrienne then decided not to deliver the furniture.
If the agent sold the goods to Simple,and in the course of the negotiations indicated that the furniture was his,the agent alone would be liable.

Question 8

Without Brown's knowledge,Jones,who frequently purchased lumber on Brown's behalf,purchased a large quantity of plywood from Smith as agent for Brown.Jones later advised Brown of the purchase.
If Brown had died the day before the contract negotiated by Jones was made,Smith would be entitled to sue Brown's estate to enforce the agreement.

Question 9

Able was engaged by Charlie as his agent to purchase a parcel of land for him.Able approached the owner of the land,and offered to sell the land for him as his agent if he would pay a commission on the sale.The owner agreed,and the sale was arranged with Charlie.Without disclosing details of the transaction,Able collected a commission on the sale from both Charlie and the landowner.
Able acted in breach of his duty to act in good faith when he obtained commissions from both parties.

Question 10

Able,Baker,and Charlie carry on business in partnership as "tree surgeons." Smith contacted Able,and arranged to have a large tree removed from his front yard on a Saturday morning.Able arrived,and cut the tree in such a way that it fell on Smith's house,causing considerable damage.
Smith may bring an action against Able,Baker,and Charlie for the negligence of Able.

Question 11

Adrienne hired an agent to sell a quantity of furniture that she owned.She instructed the agent to sell the furniture without disclosing her identity as owner.The agent eventually sold the furniture to Simple.Adrienne then decided not to deliver the furniture.
If the agent indicated that he was acting as the agent for an undisclosed principal,when Adrienne refused to deliver the furniture,Simple would be obliged to elect to sue either the agent or Adrienne,if he discovered her identity.

Question 12

Without Brown's knowledge,Jones,who frequently purchased lumber on Brown's behalf,purchased a large quantity of plywood from Smith as agent for Brown.Jones later advised Brown of the purchase.
Brown is bound by the contract made by Jones,because Jones had apparent authority to purchase the lumber on Brown's behalf.

Question 13

Adrienne hired an agent to sell a quantity of furniture that she owned.She instructed the agent to sell the furniture without disclosing her identity as owner.The agent eventually sold the furniture to Simple.Adrienne then decided not to deliver the furniture.
Simple could sue both the agent and Adrienne,if he discovered her identity,since he knew the agent was acting as an agent only.

Question 14

Able was engaged by Charlie as his agent to purchase a parcel of land for him.Able approached the owner of the land,and offered to sell the land for him as his agent if he would pay a commission on the sale.The owner agreed,and the sale was arranged with Charlie.Without disclosing details of the transaction,Able collected a commission on the sale from both Charlie and the landowner.
If the secret commission was discovered,Charlie would be entitled to collect the secret commission paid to Able by the landowner.

Question 15

Able,Baker,and Charlie carry on business in partnership as "tree surgeons." Smith contacted Able,and arranged to have a large tree removed from his front yard on a Saturday morning.Able arrived,and cut the tree in such a way that it fell on Smith's house,causing considerable damage.
Only Able is liable,because he cut the tree on a Saturday morning.

Question 16

Without Brown's knowledge,Jones,who frequently purchased lumber on Brown's behalf,purchased a large quantity of plywood from Smith as agent for Brown.Jones later advised Brown of the purchase.
If Brown wished to ratify the agreement,the act of ratification would make the agreement effective as of the date that it was negotiated by Jones.

Question 17

Able was engaged by Charlie as his agent to purchase a parcel of land for him.Able approached the owner of the land,and offered to sell the land for him as his agent if he would pay a commission on the sale.The owner agreed,and the sale was arranged with Charlie.Without disclosing details of the transaction,Able collected a commission on the sale from both Charlie and the landowner.
The owner of the property,who also thought that Able was his agent,would be entitled to recover the commission he paid to Able.

Question 18

Able,Baker,and Charlie carry on business in partnership as "tree surgeons." Smith contacted Able,and arranged to have a large tree removed from his front yard on a Saturday morning.Able arrived,and cut the tree in such a way that it fell on Smith's house,causing considerable damage.
If the partnership is held liable for Smith's loss,Baker and Charlie would be entitled to recover the loss from Able,because Able was careless in doing the work.

Question 19

Adrienne hired an agent to sell a quantity of furniture that she owned.She instructed the agent to sell the furniture without disclosing her identity as owner.The agent eventually sold the furniture to Simple.Adrienne then decided not to deliver the furniture.
If the agent simply does not disclose that he is acting as the agent for a principal,Simple may elect to sue either the agent or Adrienne,if he discovers her identity.

Question 20

Able,Baker,and Charlie carry on business in partnership as "tree surgeons." Smith contacted Able,and arranged to have a large tree removed from his front yard on a Saturday morning.Able arrived,and cut the tree in such a way that it fell on Smith's house,causing considerable damage.
Only Able would be liable,because he did not inform Baker and Charlie of the agreement he made with Smith.

Question 21

Certain high-technology components may not be exported to nations on the Export Controls List.The export broker for a manufacturer of such components could be held liable for any loss to the manufacturer as a result of
An agent who makes a contract but does not disclose the identity of his or her principal may be held personally liable on the contract.

Question 22

Vlad,Xavier,and Ziggy carry on business in partnership as landscape gardeners.Vlad purchased a set of patio furniture on credit for his personal use from a firm where the partnership purchased most of its equipment.Vlad failed to pay for the goods,and the equipment supplier charged the purchase of the furniture to the partnership,as the goods had been delivered to the partnership's place of business.
In an agency relationship all of the general rules of contract,except the rules of capacity,apply to all of the parties.

Question 23

Amina,Bill,and Connor carried on business in partnership as hardware merchants.Bill,who did most of the purchasing of stock for the partnership,would occasionally purchase (using his own money)an extra quantity of some items that could readily be sold to consumers.He would use the truck owned by the business on the weekends to travel to his cottage where he would sell the items to cottage owners in the area of his own cottage.Amina and Connor were unaware of Bill's actions,as B had not revealed his weekend business activity to either Amina or Connor.
Bill's only liability to Amina and Connor is for expenses for his use of the truck.

Question 24

Vlad,Xavier,and Ziggy carry on business in partnership as landscape gardeners.Vlad purchased a set of patio furniture on credit for his personal use from a firm where the partnership purchased most of its equipment.Vlad failed to pay for the goods,and the equipment supplier charged the purchase of the furniture to the partnership,as the goods had been delivered to the partnership's place of business.
If the goods were not purchased in the ordinary course of partnership business,and purchased in Vlad's name only,the partnership would be liable,because the partnership is liable for the personal debts of the partner.

Question 25

Amina,Bill,and Connor carried on business in partnership as hardware merchants.Bill,who did most of the purchasing of stock for the partnership,would occasionally purchase (using his own money)an extra quantity of some items that could readily be sold to consumers.He would use the truck owned by the business on the weekends to travel to his cottage where he would sell the items to cottage owners in the area of his own cottage.Amina and Connor were unaware of Bill's actions,as B had not revealed his weekend business activity to either Amina or Connor.
Bill must pay over to the partnership the profit earned by his weekend selling,because he used partnership assets to earn the profits.

Question 26

Amina,Bill,and Connor carried on business in partnership as hardware merchants.Bill,who did most of the purchasing of stock for the partnership,would occasionally purchase (using his own money)an extra quantity of some items that could readily be sold to consumers.He would use the truck owned by the business on the weekends to travel to his cottage where he would sell the items to cottage owners in the area of his own cottage.Amina and Connor were unaware of Bill's actions,as B had not revealed his weekend business activity to either Amina or Connor.
Bill's actions were in breach of the partnership agreement,since the agreement is a contract of utmost good faith.

Question 27

Certain high-technology components may not be exported to nations on the Export Controls List.The export broker for a manufacturer of such components could be held liable for any loss to the manufacturer as a result of
Recording incorrect part numbers on government export approval applications that the manufacturer reviews and signs.

Question 28

Amina,Bill,and Connor carried on business in partnership as hardware merchants.Bill,who did most of the purchasing of stock for the partnership,would occasionally purchase (using his own money)an extra quantity of some items that could readily be sold to consumers.He would use the truck owned by the business on the weekends to travel to his cottage where he would sell the items to cottage owners in the area of his own cottage.Amina and Connor were unaware of Bill's actions,as B had not revealed his weekend business activity to either Amina or Connor.
The partnership is automatically dissolved because of Bill's actions.

Question 29

Certain high-technology components may not be exported to nations on the Export Controls List.The export broker for a manufacturer of such components could be held liable for any loss to the manufacturer as a result of
Incorrectly classifying prohibited components on the export approval applications.

Question 30

Amina,Bill,and Connor carried on business in partnership as hardware merchants.Bill,who did most of the purchasing of stock for the partnership,would occasionally purchase (using his own money)an extra quantity of some items that could readily be sold to consumers.He would use the truck owned by the business on the weekends to travel to his cottage where he would sell the items to cottage owners in the area of his own cottage.Amina and Connor were unaware of Bill's actions,as B had not revealed his weekend business activity to either Amina or Connor.
Because Bill was not selling the goods in the area where Amina,Bill,and Connor carry on business,he is entitled to keep his profits.

Question 31

Certain high-technology components may not be exported to nations on the Export Controls List.The export broker for a manufacturer of such components could be held liable for any loss to the manufacturer as a result of
The apparent authority of an agent is not sufficient to bind a principal in a contract with a third party that is negotiated after the agency relationship has been terminated.

Question 32

Certain high-technology components may not be exported to nations on the Export Controls List.The export broker for a manufacturer of such components could be held liable for any loss to the manufacturer as a result of
Abby entered into a contract to purchase a computer system from Karen after a call from B's sales representative who mistakenly informed Abby that she would receive a 40 percent discount.When Abby is billed for the full amount,her only recourse is to pay the bill and bring an action against Karen and the sales representative for the difference.

Question 33

Vlad,Xavier,and Ziggy carry on business in partnership as landscape gardeners.Vlad purchased a set of patio furniture on credit for his personal use from a firm where the partnership purchased most of its equipment.Vlad failed to pay for the goods,and the equipment supplier charged the purchase of the furniture to the partnership,as the goods had been delivered to the partnership's place of business.
The partnership is liable for the furniture,because the furniture was delivered to the partnership's place of business.

Question 34

Certain high-technology components may not be exported to nations on the Export Controls List.The export broker for a manufacturer of such components could be held liable for any loss to the manufacturer as a result of
An agency for the purpose of carrying out a specific task automatically terminates once the task has been accomplished without giving notice to third parties.

Question 35

Amina,Bill,and Connor carried on business in partnership as hardware merchants.Bill,who did most of the purchasing of stock for the partnership,would occasionally purchase (using his own money)an extra quantity of some items that could readily be sold to consumers.He would use the truck owned by the business on the weekends to travel to his cottage where he would sell the items to cottage owners in the area of his own cottage.Amina and Connor were unaware of Bill's actions,as B had not revealed his weekend business activity to either Amina or Connor.
Amina and Connor are entitled to claim their share of the profits earned by Bill from his weekend selling activity.

Question 36

Certain high-technology components may not be exported to nations on the Export Controls List.The export broker for a manufacturer of such components could be held liable for any loss to the manufacturer as a result of
A principal who ratifies a contract may begin accepting benefits under the contract before it has been ratified in writing.

Question 37

Vlad,Xavier,and Ziggy carry on business in partnership as landscape gardeners.Vlad purchased a set of patio furniture on credit for his personal use from a firm where the partnership purchased most of its equipment.Vlad failed to pay for the goods,and the equipment supplier charged the purchase of the furniture to the partnership,as the goods had been delivered to the partnership's place of business.
The partnership is liable,because Vlad,as a partner,could bind the firm in contracts made in the ordinary course of partnership business.

Question 38

Vlad,Xavier,and Ziggy carry on business in partnership as landscape gardeners.Vlad purchased a set of patio furniture on credit for his personal use from a firm where the partnership purchased most of its equipment.Vlad failed to pay for the goods,and the equipment supplier charged the purchase of the furniture to the partnership,as the goods had been delivered to the partnership's place of business.
The role of an agent is to carry out a specific task for his or her principal with a third party such that there are no direct dealings between the principal and third party.The third party need never be told of the existence of the principal.

Question 39

Vlad,Xavier,and Ziggy carry on business in partnership as landscape gardeners.Vlad purchased a set of patio furniture on credit for his personal use from a firm where the partnership purchased most of its equipment.Vlad failed to pay for the goods,and the equipment supplier charged the purchase of the furniture to the partnership,as the goods had been delivered to the partnership's place of business.
An agent was engaged by a developer to arrange financing and obtained a favourable arrangement from a local lending institution.The lender gave the agent a fee for bringing in such a large account.The agent must disclose this fee to his principal.

Question 40

Vlad,Xavier,and Ziggy carry on business in partnership as landscape gardeners.Vlad purchased a set of patio furniture on credit for his personal use from a firm where the partnership purchased most of its equipment.Vlad failed to pay for the goods,and the equipment supplier charged the purchase of the furniture to the partnership,as the goods had been delivered to the partnership's place of business.
The partnership is not liable,as the goods were not purchased in the ordinary course of partnership business.

Question 41

Speedy Delivery Service,an unregistered partnership in Toronto,has been sued by the injured party in a motor vehicle accident that occurred with one of Speedy's delivery trucks.Speedy believes it has a good defence in contributory negligence.
Speedy may immediately file a Statement of Defence in these proceedings.

Question 42

Certain high-technology components may not be exported to nations on the Export Controls List.The export broker for a manufacturer of such components could be held liable for any loss to the manufacturer as a result of
It will be on only rare occasions that individuals who are principals will find themselves in a position of having to ratify contracts made by their agents.

Question 43

The partners of Green Grow Landscaping no longer feel that James is contributing to the firm's business.Green Grow has no partnership agreement.
If the vote were unanimous,the outcome in Question 55 would be different.

Question 44

Certain high-technology components may not be exported to nations on the Export Controls List.The export broker for a manufacturer of such components could be held liable for any loss to the manufacturer as a result of
Where "Jane Doe per John Doe" appears executed on a signature line,Jane Doe is the agent.

Question 45

John and Peter purchased a joint interest in a five-acre campground with a variety store and mini-golf course and retained the existing manager to handle day-to-day operations.From time to time they made improvements to the site and each year they divided the profits (or losses)from the campground equally between the two of them.
If Peter takes over operational management and John assumes the administrative tasks associated with the campground,a partnership exists in respect of the business.

Question 46

The partners of Green Grow Landscaping no longer feel that James is contributing to the firm's business.Green Grow has no partnership agreement.
Any partner may terminate a partnership agreement that is for a specified period of time upon giving notice of dissolution to the remaining partners.

Question 47

The partners of a small accounting firm delegate responsibilities among themselves for various duties.Davies is responsible for professional development.After reserving a banquet room and food for a seminar at which a leading tax accountant will speak,Davies learns on the eve of the seminar that the guest cannot attend.
An ex-partner can never be liable for partnership debts incurred after he leaves the partnership.

Question 48

The partners of a small accounting firm delegate responsibilities among themselves for various duties.Davies is responsible for professional development.After reserving a banquet room and food for a seminar at which a leading tax accountant will speak,Davies learns on the eve of the seminar that the guest cannot attend.
A partner who acts beyond his actual authority in dealings with third parties will be liable to the other partners under the notion of "breach of warranty of authority."

Question 49

Certain high-technology components may not be exported to nations on the Export Controls List.The export broker for a manufacturer of such components could be held liable for any loss to the manufacturer as a result of
The law of agency has its roots in all of tort,contract,quasi-contract,and the law of equity.

Question 50

John and Peter purchased a joint interest in a five-acre campground with a variety store and mini-golf course and retained the existing manager to handle day-to-day operations.From time to time they made improvements to the site and each year they divided the profits (or losses)from the campground equally between the two of them.
John and Peter are partners.

Question 51

Certain high-technology components may not be exported to nations on the Export Controls List.The export broker for a manufacturer of such components could be held liable for any loss to the manufacturer as a result of
Ramona is departing on vacation,while the home she has put up for sale has sold unexpectedly quickly.She asks her friend Veronica to execute documents on her behalf while she is away,related to the sale of her house.Veronica will be appointed as principal under a power of attorney.

Question 52

Speedy Delivery Service,an unregistered partnership in Toronto,has been sued by the injured party in a motor vehicle accident that occurred with one of Speedy's delivery trucks.Speedy believes it has a good defence in contributory negligence.
The result in Question 59 would be different if Speedy were located in Vancouver.

Question 53

The partners of Green Grow Landscaping no longer feel that James is contributing to the firm's business.Green Grow has no partnership agreement.
Four out of six of the partners may vote to successfully dismiss James from the partnership.

Question 54

The partners of Green Grow Landscaping no longer feel that James is contributing to the firm's business.Green Grow has no partnership agreement.
James may not transfer his share in the partnership to another person.

Question 55

The partners of a small accounting firm delegate responsibilities among themselves for various duties.Davies is responsible for professional development.After reserving a banquet room and food for a seminar at which a leading tax accountant will speak,Davies learns on the eve of the seminar that the guest cannot attend.
The firm is liable for the banquet cancellation charge.

Question 56

The partners of a small accounting firm delegate responsibilities among themselves for various duties.Davies is responsible for professional development.After reserving a banquet room and food for a seminar at which a leading tax accountant will speak,Davies learns on the eve of the seminar that the guest cannot attend.
The provisions of the Partnership Act supersede the terms of a partnership agreement with respect to the rights and obligations of the partners to one another.

Question 57

The partners of a small accounting firm delegate responsibilities among themselves for various duties.Davies is responsible for professional development.After reserving a banquet room and food for a seminar at which a leading tax accountant will speak,Davies learns on the eve of the seminar that the guest cannot attend.
If Davies arranges a holiday party at a local restaurant for partners and their spouses,the restaurant can demand payment from Davies if the firm fails to pay the bill.

Question 58

Certain high-technology components may not be exported to nations on the Export Controls List.The export broker for a manufacturer of such components could be held liable for any loss to the manufacturer as a result of
The most common form of agency by necessity is the relationship between a real estate agent and his or her principal.

Question 59

Certain high-technology components may not be exported to nations on the Export Controls List.The export broker for a manufacturer of such components could be held liable for any loss to the manufacturer as a result of
Where one is an agent by conduct,it may equally be said that one is an agent by estoppel.

Question 60

Certain high-technology components may not be exported to nations on the Export Controls List.The export broker for a manufacturer of such components could be held liable for any loss to the manufacturer as a result of
The sharing of business profits is insufficient to indicate the existence of a partnership agreement.

Question 61

The liability of a limited partner is restricted to his or her contribution to capital,and the limited partner may manage this exposure by either increasing or decreasing that contribution during the life of the partnership.

Question 62

No general partner of a registered partnership may be a minor.

Question 63

Limited liability partnerships (LLP)are suitable forms of organization for professionals such as accountants and lawyers.

Question 64

Agents may expose themselves to personal liability on a contract by entering into an agreement with a third party

A)without disclosing the fact that they are an agent.
B)expressly describing themselves as an agent but without disclosing the identity of the principal.
C)on behalf of a fictitious principal.
D)on behalf of a principal for whom the agent did not have authority to act.
E)All of these.

Question 65

Binding agency relationships may arise in a number of ways.These include

A)conveying the impression that one person has the authority to act on behalf of another.
B)an agreement in compliance with the Statute of Frauds.
C)circumstances in which a person may act on behalf of and bind another to avoid or mitigate an emergency.
D)by estoppel.
E)All of these.

Question 66

Shana-Kay is a partner in a limited liability partnership of accountants.As a result of accounting advice that Shana-Kay gave to one of her clients,that client lost $1 million.If a court rules that the client is entitled to damages of $1 million,all the partners are responsible to pay for the client's loss.

Question 67

Ted is employed by a large securities brokerage firm as a junior account executive.The nature of Ted's responsibilities is to manage the portfolio accounts for approximately 25 clients.Ted's relationship with his clients is characterized by which of the following?

A)Ted may be liable to a client for failure to trade securities for the account in certain circumstances if the client experiences a loss as a result.
B)When Ted receives information about a pending stock split for a client's stock,Ted's client is attributed with this knowledge whether he actually receives it or not.
C)Ted must deposit any proceeds from the sale of a client's securities in a separate account identified as the client's.
D)Ted may from time to time borrow paid-up securities from a client's account to cover brokerage needs,provided he does not incur the client a loss.
E)a,b,and c.

Question 68

Jane acted as agent for the ACME Construction Co.as a buyer of materials.On Monday,while Jane was travelling on a buying trip,one of ACME's creditors petitioned it into bankruptcy.The following day,Jane purchased three boxcar loads of lumber on behalf of ACME.

A)ACME is liable to pay for the lumber.
B)Jane may be in breach of her warranty of authority.
C)Jane's agency relationship with ACME will terminate as soon as Jane is notified.
D)ACME may ratify the lumber contract when it becomes aware of it.
E)a and d.

Question 69

The identity of a limited partner is rarely disclosed to third parties engaged in general business relations with the partnership.

Question 70

In an accounting limited liability partnership (LLP)the partnership is liable for the negligence of a partner in the performance of his or her professional duties.

Question 71

Where the actions of a person convey the impression to third parties that he or she has given authority to a particular person to act as an agent

A)the authority is real and of binding legal effect.
B)a contract negotiated by such an agent may not be adopted by the principal at a later time.
C)third parties may assume that the agent has authority to bind the principal until notice to the contrary has been given to the third parties.
D)the agent may be liable to the principal for acting under implied but not actual authority.
E)a,c,and d.

Question 72

Speedy Delivery Service,an unregistered partnership in Toronto,has been sued by the injured party in a motor vehicle accident that occurred with one of Speedy's delivery trucks.Speedy believes it has a good defence in contributory negligence.
A partner's share in the partnership is unascertainable until the firm's assets are liquidated.

Question 73

Speedy Delivery Service,an unregistered partnership in Toronto,has been sued by the injured party in a motor vehicle accident that occurred with one of Speedy's delivery trucks.Speedy believes it has a good defence in contributory negligence.
A partnership is a relationship of mutual trust that may or may not be a contractual relationship.

Question 74

A principal may incur liability

A)if a third party is induced to enter into a contract by the fraudulent misrepresentation of an agent.
B)by revealing his or her identity in a situation where an agent negotiated a contract without disclosing his agency.
C)where an agent reveals his agency in concluding a contract and acts within his authority.
D)where an agent reveals his agency in concluding a contract and exceeds his authority.
E)All of these.

Question 75

A limited liability partnership of engineers has appointed one member of the partnership,Vidya,to be responsible for looking after the partnership's office and its grounds.One day after an ice storm,Vidya neglected to contact the snow-clearing service to salt the office parking lot.As a result,a client slipped on the icy parking lot,hit his head and was confined to hospital for several months.The client sued.Vidya claimed that all the partners were liable to pay for any damages awarded by the courts.

Question 76

Speedy Delivery Service,an unregistered partnership in Toronto,has been sued by the injured party in a motor vehicle accident that occurred with one of Speedy's delivery trucks.Speedy believes it has a good defence in contributory negligence.
A limited partner who allows his or her name to appear on the partnership's letterhead will likely be considered to be a fully liable general partner.

Question 77

Limited partners may actively participate in the control of the partnership without jeopardizing their limited liability status.

Question 78

Speedy Delivery Service,an unregistered partnership in Toronto,has been sued by the injured party in a motor vehicle accident that occurred with one of Speedy's delivery trucks.Speedy believes it has a good defence in contributory negligence.
To the extent that there is no express agreement to the contrary,provincial partnerships legislation will "fill in" gaps in defining the partners' relationship,and,generally speaking,any agreement of the partners regarding their relationship will supersede the provisions of the legislation.

Question 79

In March,Kemal entered into an agreement with Bernadette whereby Kemal would rent Bernadette his cottage for one week in July.In May that same year,Kemal negligently caused significant fire damage to the cottage while roasting marshmallows over a roaring fire in the cottage fireplace.As a result,the cottage was inhabitable for six months.Kemal can successfully assert that this agreement is frustrated.

Question 80

When one joins an existing partnership,care must be taken to examine the records of the partnership as any new partner automatically becomes jointly and severally liable for the existing partnership debts along with the existing partners.