Fact Pattern
Luann and Mace are partners in Networx,a computer peripherals firm.
-Refer to Fact Pattern 17-2A.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 
Luann and Mace are partners in Networx,a computer peripherals firm.
-Refer to Fact Pattern 17-2A.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

The contract is binding on Luann, Mace, and Networx because Physik Drives was not aware of Mace's dissociation, and thus, Mace is still considered a partner with apparent authority to bind the partnership.

Fact Pattern Luann and Mace Are Partners in Networx,a Computer Peripherals Firm