Fact Pattern 37-2A (Questions A9-A10 apply)
Luann and Mace are partners in Networx,a computer peripherals firm.
-Refer to Fact Pattern 37-2A.Mace dissociates from Networx.Luann signs a con?tract with Physik Drives,a wholesale component supplier,apparently on Networx's behalf.Physik does not know of Mace's dissociation.The contract is binding on
A)Luann,Mace,and Networx.
B)Luann only.
C)Networx only.
D)Physik only.

Question

Quizplus · Accepted Answer

The contract is binding on Luann, Mace, and Networx because Physik Drives was not aware of Mace's dissociation, and thus, Mace is still considered a partner with apparent authority to bind the partnership.

Fact Pattern 37-2A (Questions A9-A10 Apply)