Fact Pattern 36-2A

question 67

Multiple Choice

Fact Pattern 36-2A
Hal, Ira, and Jill are partners in Kappa Accessories, a computer peripherals firm.
-Refer to Fact Pattern 36-2A. Hal signs a contract with Lycra Chips, a retail component supplier, allegedly on Kappa's behalf. The contract is binding on

• A) Hal, Ira, Jill, and Kappa.
• B) Hal only.
• C) Kappa only.
• D) no one.

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Definitions:

Stop-Payment Order

A request made to a financial institution to cancel the processing of a check or payment before it has been cleared.

Bank's Liability

Bank's liability refers to the legal responsibility of a bank for its actions or inactions, including obligations towards customers, breaches of contract, or regulatory non-compliance.

Disclaimer

A statement that denies responsibility intended to limit legal liability or clarify that certain guarantees are not provided.

Effective

Having the intended or expected effect; capable of bringing about a desired result.