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?
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