Amy and Lester are partners in operating a store. Without consulting Amy, Lester enters into a contract to purchase $10,000 of merchandise for the store. Amy says she did not authorize the order and that she could have purchased the same merchandise for $7,000. Amy refuses to pay for the order. The vendor sues the partners.
a. Must the partnership pay for the merchandise? If yes, how much?
b. Assuming the partnership is a general partnership, can Amy’s personal assets be taken to pay for the merchandise?