Trusted since 2008
LoginRegister
Study resources on Kenyaplex

Get ready-made curriculum aligned revision materials

Exam papers, notes, holiday assignments and topical questions – all aligned to the Kenyan curriculum.

Browse exam papers
Or go directly to:
Class notes Holiday assignments Topical questions Other resources

Outline conditions that must be met before a partner in a firm could bind other partners in transactions with third parties

Outline conditions that must be met before a partner in a firm could bind other partners in transactions with third parties.

Answers

Kelvin
The conditions that must be met before a partner can bind other partners in a transaction with a third party are;
1. If the partners agreement allows this to happen. If the partners deed ,that is usually written before the establishment of the organizations allows this then one member can do a transaction even in the absence of the other members.
2. If the business transaction is urgent. In case the purpose of this transaction is urgent a partner can do so, provided the records of the transaction ate kept.
3. If the transaction cost was initially agreed by all partners, then one member can move forth to bind the transaction with a third party.
4. If the third party have been working with the organization before, then a partner can bind other partners in a transaction with him/her.
Kelvin kinuthia answered the question on May 10, 2019 at 16:34

Answer Attachments

Next: Describe stream Cut Valleys and their formation.

Previous: Explain the reason why growing grass dries when salt is sprinkled on it?

View more CPA Commercial Law Questions and Answers  |  Return to Questions Index

Exams With Marking Schemes

Related Questions