Persons Who Are Not Partners Under Appropriate Circumstances May Be

question 17

True/False

Persons who are not partners under appropriate circumstances may be held liable to third persons as though they were partners.

---

Definitions:

Actual Authority

A legal concept where a party is officially granted the power to act on behalf of another, particularly in a business setting.

Implied Authority

The power of an agent to act on behalf of a principal, assumed to be granted due to the nature of the relationship, without explicit consent.

Actual Authority

The specific powers that a principal explicitly grants to an agent to act on their behalf.

Authority to Sell

The legal power granted, usually to an agent, to transfer the ownership of property from the seller to the buyer.