Angie, Chloe, and Michele carry on business in partnership as landscape gardeners. Angie purchased a set of patio furniture on credit for her personal use from a firm where the partnership purchased most of its equipment. Angie failed to pay for the goods, and the equipment supplier charged the purchase of the furniture to the partnership, as the goods had been delivered to the partnership's place of business. The partnership is liable for the furniture, because the furniture was delivered to the partnership's place of business.

Question

Quizplus · Accepted Answer

The partnership is generally not liable for Angie's personal purchases unless the purchase was made within the scope of the partnership's business or Angie was authorized by the partnership to make the purchase for personal use. The fact that the furniture was delivered to the partnership's place of business does not automatically make the partnership liable for Angie's personal debt.

Angie, Chloe, and Michele Carry on Business in Partnership as Landscape