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