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