Question: Otis and Hunan are partners in operating a store. Without consulting Otis, Hunan enters into a contract to purchase merchandise for the store. Otis contends

Otis and Hunan are partners in operating a store. Without consulting Otis, Hunan enters into a contract to purchase merchandise for the store. Otis contends that he 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 Otis and Hunan are partners in a public accounting firm? Explain.

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