If a partner's act is not apparently for carrying on in the ordinary course the partnership business:
A) the partnership is bound only where the partner has actual authority.
B) the third person dealing with the partner becomes liable along with the partner.
C) the partner is necessarily acting without authority.
D) the partnership is bound anyway because a partner always has authority to bind the partnership.

Question

Quizplus · Accepted Answer

In situations where a partner's actions do not seem to be for conducting the usual business of the partnership, the partnership is only bound by those actions if the partner had actual authority to perform them. This is because partners are generally presumed to have authority for acts in the ordinary course of business, but for acts outside of that scope, specific, actual authority is required.

If a Partner's Act Is Not Apparently for Carrying on in the Ordinary