1.99 See Answer

Question: Felagi and MacWilliams agreed to open a


Felagi and MacWilliams agreed to open a restaurant selling pizza and sandwiches. The business was organized as a partnership, with each partner owning 50 percent and sharing profits and losses equally. The two partners also agreed that each would have actual authority to spend up to $500 for purchases relating to the restaurant without the prior approval of the other partner. Salespersons of a nearby automobile dealership regularly ate lunch in the restaurant and came to know that Felagi was an owner of the establishment. Felagi, without consulting MacWilliams, then signed a contract to purchase a $17,000 vehicle in the partnership’s name. MacWilliams later learned of the transaction and refused to honor the contract.
a. Can the automobile dealership sue the partnership to enforce the contract?
b. Can the automobile dealership elect to sue only Felagi to enforce the contract?
c. Can the automobile dealership elect to sue only MacWilliams to enforce the contract?
d. Does Felagi have apparent authority to bind the partnership?

1.99

See Answer