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Partnership — authority

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › Partnership — authority

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by MikeLittle.
Viewing 2 posts - 1 through 2 (of 2 total)
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  • January 28, 2018 at 1:22 pm #433621
    humai
    Participant
    • Topics: 757
    • Replies: 248
    • ☆☆☆☆☆

    H, S and T formed a partnership to run a petrol station, the partnership agreement expressly stated that the partnership business was to be limited exclusively to sale of pertol. In January 2008, S received $10000 from the partnership bank drawn on its overdraft facility. He told the bank that the money was to finance a short term partnership debt but infact he used the money to pay for a round the world cruise. In Feb T entered into a $15000 contract on behalf of the partnership to buy some used cars which he hoped to sell from the garage forecourt.

    a) Sir here does S has express authority to borrow loan from bank? Please reply in yes or no

    b) Does T has express authority to enter into contract to buy some used cars ? Please reply in yes or no

    January 28, 2018 at 2:01 pm #433625
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23321
    • ☆☆☆☆☆

    No, but express authority is not needed

    Same answer, no, but not needed

    OK?

    That’s your three for the day. Any more today will be answered tomorrow (maximum of three)

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  • The topic ‘Partnership — authority’ is closed to new replies.

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