Actual authority terminates upon:
A)dissolution of the partnership.
B)illness of one of the partners.
C)physical destruction of partnership papers.
D)All of the above.

Question

Quizplus · Accepted Answer

Actual authority is the authority granted to a partner explicitly or implicitly by the partnership agreement. Upon dissolution of the partnership, the actual authority of the partners terminates. Hence option A is the correct answer. Option B is incorrect as illness of one partner does not necessarily terminate the actual authority of the other partner. Option C is also incorrect as physical destruction of partnership papers may temporarily affect the authority but it does not necessarily terminate the actual authority of the partners.

Actual Authority Terminates Upon