Fact Pattern 23-2
Luann and Mace are partners in Networx, a computer peripherals firm.
-Refer to Fact Pattern 23-2.Mace dissociates from Networx.Luann signs a contract with Physik Drives,a wholesale component supplier,apparently on Networx's behalf.Physik does not know of Mace's dissociation.The contract is binding on

Question

Fact Pattern 23-2 
Luann and Mace are partners in Networx, a computer peripherals firm.
-Refer to Fact Pattern 23-2.Mace dissociates from Networx.Luann signs a contract with Physik Drives,a wholesale component supplier,apparently on Networx's behalf.Physik does not know of Mace's dissociation.The contract is binding on

Quizplus · Accepted Answer

Since Physik Drives does not know of Mace's dissociation, the contract is binding on Luann, Mace, and Networx. Under partnership law, a partner's dissociation does not immediately affect the authority of the remaining partners to bind the partnership unless the third party is aware of the dissociation.