Until Yesterday,when X Co

question 14

Multiple Choice

Until yesterday,when X Co.fired Henry,Henry was employed as a purchasing representative,and over the time,he worked for X Co.,Henry compiled an extensive list of X Co.'s customers.Henry,who is extremely angry over being fired,decides to get back at X Co.,so he contacts X Co.'s largest supplier and on behalf of X Co.enters into a contract for the purchase by X Co.of 1 million dollars worth of goods that X Co.really has no need for.In this situation

• A)there is a contract between the supplier and X Co.
• B)not having notified its customers,X Co.is estopped from arguing that there is no contract.
• C)X Co.had a duty to notify its suppliers that Henry had been fired.
• D)not having notified its customers,X Co.held out Henry as having the authority to make the contract.
• E)all of the above

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Definitions:

Partnership Relationship

The legal and operational relationship existing between partners in a business venture, governed by a partnership agreement.

Obligations

Duties or responsibilities imposed by law, contract, or social norms.

Dissolved

The process of legally ending the existence of an entity such as a corporation.

Liability Of Partners

The legal responsibility of each partner in a partnership for the debts and obligations of the business, which can be joint or several depending on the jurisdiction and partnership agreement.