Section 15: Business Structures

Question 1

Partnership - Types of Authority

Answer 1

• Actual - gives partner power to contract
  
  • Express - explicitly stated
  • Implied - assigned tasks that require authority
• Apparent - created impression
  
  • Good faith 3rd party reasonably assumes you have
• Unauthorized Action - not liable unless ratify

Question 2

Partnership - Unanimous consent needed for… (AGAST)

Answer 2

• Admitting new partner
• Guaranteeing the debts of 3rd party
• Admitting legal claim in court
• Sale or pledge of partnership property
• Third party are notified of a limit to the partner’s actual authority

Question 3

Statute of Frauds

GROSS

Answer 3

• sale of Goods worth $500 or more
• Real estate sales
• Over one yr required to perform contract
• Suretyship
• Statements in consideration of marriage

Question 4

Unanimous constent required for the following:

AGAST

Answer 4

• Admitting a new partner
• Guaranteeing the debts of a third party
• Admitting or submitting a legal claim in coiurt
• Sale or pledge of partnership property
• Third parties are notified of a limit to the partner’s actual authority