Chief Danladi, a partner in an Abuja estate survey firm, orders office laptops in the name of the firm without express authorization from co-partners. The vendor delivers the goods believing Chief Danladi has authority. Under Nigerian Partnership Law, which statement correctly determines the firm's liability to the vendor?

Question

Accepted Answer

The firm is bound because every partner is an agent of the firm for the purpose of its business, unless the partner lacks authority and the third party knows it or does not know him to be a partner.. Every partner is an agent of the firm and co-partners for the firm's business. Under standard implied authority rules, an act done by a partner for carrying on business of the kind carried on by the firm in the usual way binds the firm, unless the partner has no authority and the third party either

Answer

A) The firm is bound because every partner is an agent of the firm for the purpose of its business, unless the partner lacks authority and the third party knows it or does not know him to be a partner.

Answer

B) The firm is not bound under any circumstance unless the transaction was approved in writing by all partners prior to execution.

Answer

C) The firm is bound only if Chief Danladi pledged his personal assets as security for the debt.

Answer

D) The firm is not bound because purchases above nominal values require a resolution registered with the Corporate Affairs Commission.

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