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Hi Mike.
from the notes:
“Every partner is an agent of the firm and the other partners for the purpose of the business of the firm.
? The acts of every partner done in the course of the firm’s business bind the firm and the partners unless the partner was exceeding his authority and ……
? … the other party knew that fact, or was not aware that the person was a partner”so to be clear- if the other partners did not know the partner was exceeding his authority, they are liable? e.g. if he/she did something without their knowledge or approval?
and if they are not aware that someone else is a partner, they are not liable- do you know of any practical examples of this? also, isn’t this contrary to the idea that a principle is always liable for an agents actions?
thank you.
“so to be clear- if the other partners did not know the partner was exceeding his authority”
That’s not what I said!
“the other PARTY knew that fact”
“isn’t this contrary to the idea that a principle is always liable for an agents actions?”
But if the person dealing with the agent is aware that the agent is acting beyond their authority, then the third party cannot hold the principal liable
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