Multiple choice

The act done by a partner under his authority and in the good faith

  1. is binding upon the firm

  2. is binding upon the partner himself

  3. is optional for the firm to assume

  4. does not bind anyone

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Because of mutual agency relations, the partners can bind the firm provided the act is done in good faith and within authority. The acts done outside the scope of authority are not binding upon the firm.