Lilly and Betty are partners in an auditing firm. Their partnership agreement stipulates that only Lilly may contract on behalf of the partnership. Betty purchase a yacht on behalf of the partnership.
which statement is correct?
- the partnership will be bound to the contract to put hands regardless of whether Lilly gave her consent, in terms of the principle of mutual mandate
- the partnership will be bound to all contracts concluded in the name of the partnership because it has a separate juristic personality
- the partnership will be bound to the contract to purchase the yacht only if Lilly gives her consent
- the partnership cannot be bound, because the doctrine of constructive notice applies in partnerships