Sarah Smith works as a laser technician for a local dermatology center consisting of physicians operating under a partnership agreement.Sarah purchased supplies through the mail from a medical supply facility totaling $5,000.She signed the contract agreeing to pay for the supplies in her name,Sarah Smith.A few weeks later the dermatologists became embroiled in a bitter dispute regarding profits and terminated the partnership.Unfortunately,the partners were not aware of the debt owed to the medical supply facility; and the bill remained unpaid.Sarah received a bill form the supply company for $5,000.Is she liable to the medical supply company,and why or why not?

Question

Quizplus · Accepted Answer

Sarah Smith is liable to the medical supply company because she signed the contract agreeing to pay for the supplies in her own name. The fact that she was only employed as a technician is irrelevant. The medical supply facility had the right to rely on her signature as a binding agreement to pay for the supplies. The termination of the partnership does not affect her personal liability for the debt.

Sarah Smith Works as a Laser Technician for a Local