View the step-by-step solution to:

Lance purchases a new ute from Mighty Motors Pty Ltd for $25,000. He tells Lynton, the car salesperson that he is a partner in a herbal products...

Lance purchases a new ute from Mighty Motors Pty Ltd for $25,000. He tells Lynton, the car salesperson that he is a partner in a herbal products business. Lynton is aware of the business as he has read an article about it in the local newspaper. The three partners had agreed that a car would be purchased for the business but Lance was instructed not to spend over $20,000. Lynton is completely unaware that Lance has a purchasing limit. Will the partnership be bound by this contract? Can the other partners take action against Lance?

Top Answer

Yes the partnership will be bound by the contract of the car purchased as Lance acted on behalf of the partnership business... View the full answer

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask a homework question - tutors are online