John and Roger are partners in a secondhand car dealership. Their partnership agreement does not contain any provision regarding the capacity of the partners to bind co-partners in contracts concluded with outsiders. While Roger is overseas, Clint offers John a good price for the most expensive car on their showroom floor. Which ONE of the following statements is CORRECT?a.John has the authority to sell the car to Clint.b.John does not have the authority to sell the car without the cooperation of his partner.c.John may sell the car to Clint, provided Roger is informed of the transaction.d.John may only sell the car if he makes a profit, which Roger will also share.
Question
John and Roger are partners in a secondhand car dealership. Their partnership agreement does not contain any provision regarding the capacity of the partners to bind co-partners in contracts concluded with outsiders. While Roger is overseas, Clint offers John a good price for the most expensive car on their showroom floor. Which ONE of the following statements is CORRECT?a.John has the authority to sell the car to Clint.b.John does not have the authority to sell the car without the cooperation of his partner.c.John may sell the car to Clint, provided Roger is informed of the transaction.d.John may only sell the car if he makes a profit, which Roger will also share.
Solution
To determine the correct statement, we need to analyze the situation based on general principles of partnership law. Here are the steps:
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Understand the Partnership Agreement: The question states that the partnership agreement does not contain any provision regarding the capacity of the partners to bind co-partners in contracts concluded with outsiders.
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General Authority of Partners: In the absence of specific provisions in the partnership agreement, partners generally have the authority to bind the partnership in transactions that are within the ordinary course of the partnership's business.
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Nature of the Transaction: Selling a car is within the ordinary course of business for a secondhand car dealership.
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Absence of the Partner: Roger is overseas, but this does not inherently limit John's authority to conduct business as usual.
Based on these points, the correct statement is:
a. John has the authority to sell the car to Clint.
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