FLK1 Business Law — Question 13

Question

Jonah and Myriam are partners in a consultancy firm, operating as a general partnership. Jonah, without Myriam’s knowledge or consent, signs a contract on behalf of the partnership to provide IT services to a client. The client, upon discovering that Jonah acted without Myriam’s authority, wants to hold the partnership liable. Which of the following statements is correct regarding the partnership’s liability?

1. The partnership is not liable because Jonah acted without Myriam’s consent.
2. The partnership is liable because Jonah is a partner and his actions are binding on the partnership.
3. The partnership is only liable if the client can prove that Jonah had apparent authority to bind the partnership.
4. The partnership is only liable if Myriam ratifies Jonah’s actions after the fact.
5. The partnership is not liable because Jonah’s actions fall outside the scope of partnership business.