Partners are responsible for the debts and obligations of the partnership.With respect to contracts,each partner is considered to be:
A)the primarily liable party if the partner takes on the role of agent.
B)a principal of any contract entered into by an employee of the partnership.
C)an agent of the other partners so that any contract entered into by one partner with respect to the partnership business is binding on them all.
D)an agent of the partnership only so that any contract entered into by one partner only binds the partnership entity itself and not the other partners.
E)liable only for his or her capital investment should a breach of contract occur.

Question

Quizplus · Accepted Answer

Each partner is considered to be an agent of the other partners, which means any contract entered into by one partner with respect to the partnership business is binding on them all. This is known as joint and several liability, where each partner is jointly responsible for the obligations of the partnership as a whole. Therefore, options A, B, D, and E are incorrect.

Partners Are Responsible for the Debts and Obligations of the Partnership.With