Acorn and Bean were general partners in a farm machinery business. Acorn contracted, on behalf of the partnership, to purchase 10 tractors from Cobb Corp. Unknown to Cobb, Acorn was not authorized by the partnership to make such contracts. Bean refused to allow the partnership to accept delivery of the tractors, and Cobb sought to enforce the contract. Cobb will:

  

a. Lose, because Acorn’s action was beyond the scope of Acorn’s implied authority

  

b. Prevail, because Acorn had implied authority to bind the partnership

  

c. Prevail, because Acorn had apparent authority to bind the partnership

  

d. Lose, because Acorn’s express authority was restricted, in writing, by the partnership agreement

Answer rating: 100% (QA)

a C will not lose the case becaus... View the full answer