Which One of the Following Statements Is Correct with Respect

question 77

Multiple Choice

Which one of the following statements is correct with respect to the law of partnership?

• A) Partners are only responsible for contracts entered into by their partnership if the third party knew that the person they were dealing with was a partner in the partnership.
• B) Partners are responsible for any contracts entered into by their partners related to the partnership business.
• C) Partners cannot bind their partners in contract without specific written authority.
• D) A partner is responsible for contracts with third parties entered into by their partners only where it has been clearly stated by the partner to the third party that he is entering the contract on behalf of the partnership.
• E) Every partner is responsible for every contract entered into by his partner.

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Definitions:

Limited Control

A situation where an individual or organization has restricted influence or authority over outcomes or operations.

Businesspeople

Individuals engaged in activities related to the operation, management, and organization of businesses or enterprises.

Transparency Violation

An act or situation where there is a lack of openness or clarity, often leading to mistrust or misunderstanding in various contexts.

Fictitious Persona

A made-up character or identity created to represent a user type or demographic.