Answer to Question #191543 in British Law for Nikita

Question

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?

1. 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
2. the partnership will be bound to all contracts concluded in the name of the partnership because it has a separate juristic personality
3. the partnership will be bound to the contract to purchase the yacht only if Lilly gives her consent
4. the partnership cannot be bound, because the doctrine of constructive notice applies in partnerships

Answer 1

3. The partnership will be bound to the contract to purchase the yacht only if Lilly gives her consent