Fact Pattern 27-2
Kristin and Lindsey are partners in Mobile Devise, an online marketing firm.
-Refer to Fact Pattern 27-2. Lindsey dissociates from Mobile. Kristin signs a contract with Organic Olives, a food seller, apparently on Mobile's behalf. Organic Olives does not know of Lindsey's dissociation. The contract is binding on
A) Kristin, Lindsey, and Mobile.
B) Kristin only.
C) Mobile only.
D) Organic Olives only.

Question

Fact Pattern 27-2
Kristin and Lindsey are partners in Mobile Devise, an online marketing firm.
-Refer to Fact Pattern 27-2. Lindsey dissociates from Mobile. Kristin signs a contract with Organic Olives, a food seller, apparently on Mobile's behalf. Organic Olives does not know of Lindsey's dissociation. The contract is binding on​
A) ​Kristin, Lindsey, and Mobile.
B) ​Kristin only.
C) ​Mobile only.
D) ​Organic Olives only.

Quizplus · Accepted Answer

The contract is binding on Kristin, Lindsey, and Mobile because Organic Olives was not aware of Lindsey's dissociation, and thus, Lindsey is still considered a partner with apparent authority to third parties.

Fact Pattern 27-2 Kristin and Lindsey Are Partners in Mobile Devise, an Online