LAW240 GROUP 4

1. 1.Other partners are liable even if a partner acts beyond his authority.

• False

• True

2.a person can sue the third party after he already sued first and second party jointly.

• True

• False

3. An act done by any person authorised, if it is for the business with intention to bind, it is binding to the firm and all partners.

• True

• False

4.⁠all partners is a firm is not jointly liable

• True

• False

5. S.9 :a partner does not do something for the purpose of the business, other partners are not bound unless he is given authority to do so. Does not affect personal liability.

• True

• False

1. Which of the following is NOT one of the four conditions under Section 7 that must be fulfilled for an act of a partner to bind the firm and other partners?

• A. The act must be within the partner’s authority.

• B. The act must be done in the partner’s personal capacity.

• C. The act must be done within the scope of the partnership busines

• D. The act must be carried out in the usual way

2. What is the main difference between actual authority and apparent authority in the context of a partner’s power to bind the firm?

• A. Actual authority is based on what the partner appears to do; apparent authority is written in the partnership agreement.

• B. Actual authority is implied by law; apparent authority has no legal effect.

• C. Actual authority is granted directly or implied by conduct; apparent authority is based on the partner’s appearance of having authority.

• D. Actual authority applies only to limited partners; apparent authority applies only to general partners.

3. Section 10 states that the firm is liable for a partner’s tortious act if:

• A. The act is committed in the ordinary course of the firm’s business.

• B. The act is personal and unrelated to the firm’s business.

• C. The act is committed without any authority.

• D. The act is concealed from other partners.

4. In what situation is the firm liable under Section 11 for a partner’s breach of trust?

• A. When the partner misapplies money in their personal dealings.

• B. When the partner’s actions are outside the usual business of the firm.

• C. When the partner receives money or property in the course of the firm’s business and misapplies it.

• D. When the breach occurs in a different partnership.

5. 5.According to Section 11, what is the firm’s liability when a partner misapplies money received from a third party while acting within their apparent authority?

• A. The partner alone is liable.

• B. The third party must prove actual authority.

• C. The firm is not liable unless there is written authorization.

• D.The firm is liable as if the firm itself had received and misapplied the money.