A partner may bind the partnership by her act if she has:
A) apparent authority to perform the act.
B) actual authority, express or implied, to perform the act.
C) Both answers are correct.
D) None of these.

Question

Quizplus · Accepted Answer

A partner may bind the partnership by her act if she has either apparent authority, which is the authority the partnership has given the partner to act on its behalf as perceived by a third party, or actual authority, which can be either express (explicitly granted to the partner) or implied (authority to do things necessary to carry out express authority). Both A and B are correct, making C the correct choice.

A Partner May Bind the Partnership by Her Act If