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MMLU / Kendall and Thornton agree to form a partnership, but both agree that only…

Problem

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question

Kendall and Thornton agree to form a partnership, but both agree that only Kendall will manage the business and make all business decisions and execute all contracts with third parties. After that time, Thornton then enters into a long-term service contract for the partnership with Clark, who does not know of the internal agreement. The contract of Thornton with Clark is

choices

  1. enforceable, as the partners' agreement cannot withhold statutory authority of a general partner to bind the partnership.
  2. enforceable, as Clark has no knowledge of Thornton's lack of authority.
  3. unenforceable, as Thornton is unauthorized to execute the contract by the partner agreement.
  4. unenforceable, as Clark had an obligation to confirm Thornton's authority prior to entering into a service contract with the partnership.

subject

professional_law

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Source and history

task_id
179dfcd3-bb9f-505a-84b9-7fb764294437
task_key
all--test--179dfcd3-bb9f-505a-84b9-7fb764294437
task_revision_id
1
config / split
all / test

Official source

initial import