Amy and Lester are partners in operating a store. Without consulting Amy, Lester enters into a contract to purchase $10,000 of merchandise for the store. Amy says she did not authorize the order and that she could have purchased the same merchandise for $7,000. Amy refuses to pay for the order. The vendor sues the partners. a. Must the partnership pay for the merchandise? If yes, how much? b. Assuming the partnership is a general partnership, can Amy’s personal assets be taken to pay for the merchandise?
Amy and Lester are partners in operating a store. Without consulting Amy, Lester enters into a contract to purchase $10,000 of merchandise for the store. Amy says she did not authorize the order and that she could have purchased the same merchandise for $7,000. Amy refuses to pay for the order. The vendor sues the partners. a. Must the partnership pay for the merchandise? If yes, how much? b. Assuming the partnership is a general partnership, can Amy’s personal assets be taken to pay for the merchandise?
Chapter11: Invest Or Losses
Section: Chapter Questions
Problem 51P
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Question
Amy and Lester are partners in operating a store. Without consulting Amy, Lester enters into a contract to purchase
$10,000 of merchandise for the store. Amy says she did not authorize the order and that she could have
purchased the same merchandise for $7,000. Amy refuses to pay for the order. The vendor sues the partners.
a. Must the
b. Assuming the partnership is a general partnership, can Amy’s personal assets be taken to pay for the
merchandise?
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ISBN:
9781305224414
Author:
JENNINGS
Publisher:
Cengage