Sable and Rex agree while talking on the phone to form a partner?ship to deal in transfers of real property.Their partnership agreement is legally binding
A)only if a copy of the agreement is filed in the appropriate state office.
B)only if the agreement is reduced to writing.
C)only if the parties exchange valid consideration.
D)without more.

Question

Quizplus · Accepted Answer

In order for a partnership agreement to be legally binding, it must be reduced to writing. While filing a copy of the agreement in the appropriate state office is a requirement for certain types of businesses (such as corporations), it is not necessary for a partnership. Valid consideration is also required for a contract to be binding, but this does not necessarily need to be exchanged at the time of forming the partnership agreement. Therefore, the correct answer is B.

Sable and Rex Agree While Talking on the Phone to Form