Amy and Lester are partners in operating a store. Without consulting Amy, Lester enters into a contract

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Amy and Lester are partners in operating a store. Without consulting Amy, Lester enters into a contract to purchase merchandise for the store. Amy contends that she did not authorize the order and refuses to pay for it. The vendor sues the partners for the contract price of the merchandise.
(a) Must the partnership pay for the merchandise? Why?
(b) Does your answer differ if Amy and Lester are partners in a public accounting firm? Explain.

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...
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Fundamental accounting principle

ISBN: 978-0078025587

21st edition

Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta

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