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partnership

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › partnership

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by MikeLittle.
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  • June 9, 2016 at 5:39 am #321301
    sasha
    Member
    • Topics: 99
    • Replies: 141
    • ☆☆☆

    when a partner enter into contract as a apparent authority, can he be sued for a breach of contract by another partner?

    J , a sleeping partner sued for H, a salaried partner for breach of contract. In partnership agreement it states that all scientific equipment is to be supplied by J and neither of the partner may incur liability of more than 2000 without consulting other. H ordered 5000 worth of equipment from E.

    If H did not pay money to E, can E sue to only H or any of the partners?

    June 9, 2016 at 8:20 am #321343
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23321
    • ☆☆☆☆☆

    E can sue both as they are both partners – so long as H has apparent authority and J did nothing to restrict that authority in the eyes of others (E in this case)

    But J could, if J has to pay anything out, sue H for breach of partnership agreement

    That’s my take on the situation

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