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Essential that all the partners take decisions jointly
Nicholas, Jack and Madeline are planning to form a partnership to create a business that will sell a healthy breakfast-on-the-go to commuters just outside of the local train station. They have been able to reach agreement on many issues, but Madeline is concerned that Nicholas might become a little irresponsible and use his position as a partner, and the partnership's name, in business transactions that Madeline might not approve of for the partnership. Madeline feels that Nicholas has superb marketing skills that will benefit the business, but she wonders what he might do in regard to transactions with third parties on behalf of the partnership.
REQUIREDPrepare a memo to Madeline discussing the rights of each partner to engage in transactions on behalf of the partnership and how a partnership can restrict a partner's authority to engage in specific types of transactions.
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