The apparent authority of a partner to bind the partnership in dealing with third parties:
A)would permit a partner to submit a claim against the partnership to arbitration.
B)must be derived from the express powers and purposes contained in the partnership agreement.
C)will be effectively limited by a formal resolution of the partners of which third parties are aware.
D)will be effectively limited by a formal resolution of the partners of which third parties are unaware.

Question

Quizplus · Accepted Answer

To prevent apparent authority from continuing when there is a limitation of a partner's actual authority,third persons with whom the partner deals must have knowledge of the limitation of his actual authority or have received notification of the limitation,such as receiving an e-mail or fax or otherwise having the limitation brought to their attention.

The Apparent Authority of a Partner to Bind the Partnership