yllabus question #$5$: Jake Coombs, Yemi Ogarra, and Wade Stram

formed a financial services consulting partnership. The partnership$$s

ordinary business was to provide investment advice to businesses with

assets between $$500,000$ and $$40$ million. The partnerhips operated

from a small building that was owned by the partnership, even though

title was held in the name of Yemi Ogarra, who had transferred the

building to the partnership as her capital contribution. Because the

partnership quickly became profitable, the partners chose to retain

some of the earnings of the business and to invest it in commercial real

estate in the community. Such investments, however, were not part of

the partnership$$s regular business, which remained financial consulting.

Title to investment property purchased by the partnership was held in

the partnership$$s name. After a few years, the partners had a falling

out. Ogarra wanted the partnership to move its offices to a bigger,

more impressive building. she also believed that the commercial real

estate market was in a bubble and that the partnership should sell some

of its investment property. Without obtaining approval from her

partners, Ogarra sold the building in which the partnership did its

business to CFC Financial LLC$.$ Because the building was titled only in

Ogarra$$s name, CFC believed that she was the only person with an

interest in the building. Ogarra also sold to CFC a commercial

shopping mall that had been held by the partnership for investment.

title in the mall had been recorded in the partnership$$s name. Coombs

and Stram sued to void the sales of the building and mall to CFC on the

grounds that Ogarra had no authority to sell the properties. Did she

have authority to sell the building? The mall? $($from the $15$th edition