As per the doctrine of _____, if one partner signs a contract with a supplier in the name of the partnership, the other partners are also bound by the terms of the contract.
A) l imited partnership
B) general partnership
C) ostensible authority
D) s ole proprietorship
E) l imited liability

Question

Quizplus · Accepted Answer

Ostensible authority refers to a situation where a partner acts in a way that a third party reasonably believes they have the authority to bind the partnership, even if they technically do not have such authority. This means all partners are bound by the actions of one partner if those actions appear to be within the scope of the partnership's business.

As Per the Doctrine of _____, If One Partner Signs