What must happen for a partner's wrongful act to bind the partnership?

Prepare for the ACA Business Law Exam. Test your skills with our engaging questions, complete with hints and explanations. Master your subject and achieve exam success!

For a partner's wrongful act to bind the partnership, it is essential that the act be related to the business activity of the partnership. This principle is rooted in the concept of agency law, where partners can act on behalf of the partnership in relation to its business. If a wrongful act is conducted within the scope of the partnership's business, it can result in the partnership being held liable for damages, even if the specific act was performed wrongfully.

In this context, the actions taken by a partner that relate directly to the business's operations or conduct can create liability for the partnership as a whole. This ensures that the partnership is accountable for the actions taken by its members, fostering trust and responsibility among partners and third parties dealing with the partnership.

While negligence is important in certain legal contexts, it is not a requirement for the act to bind the partnership; similar reasoning applies to personal time and mutual consent, which do not align with the principle that focuses on the business context of the act.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy