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A partner signs a partnership contract for television advertising while the other two partners are on vacation. Upon returning, the two partners claim that the contract is void because two of the three partners disapprove of the agreement. Is the partnership legally bound to the contract?
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Corporate Law Attorney serving Boca Raton, FL
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Gracin & Marlow, LLP
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If you have a general partnership, any partner can bind the partnership to a contract.
Answered on Nov 08th, 2011 at 2:09 PM
Probate & Trust Attorney serving Sarasota, FL
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Christopher K. Caswell, P.A.
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Is there a partnership agreement that establishes the rights of the partners? If not, then under common law any partner can bind any of the other partners.
Even if there is a written partnership agreement, there is a general rule that one partner can bind the others. That is one primary reason why many people stay away from partnerships and use LLCs instead for their business entity relationships.
Answered on Oct 13th, 2011 at 1:06 PM