Multiple choice

When a partner is exceeding his authority, he can personally be made liable by the rest of the partners of the firms.

  1. True

  2. False

  3. Partly true

  4. Cannot say
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

When a partner exceeds their authority, the firm is not bound by their unauthorized acts. The partner becomes personally liable to the other partners for any losses caused, as they acted outside the scope of their agency.

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