T Bieterman and J Garcia formed a trucking business in 2009

T. Bieterman and J. Garcia formed a trucking business in 2009 as a general partnership with no specific limitations written into their partnership agreement. On June 8, 2011 J. Garcia visited a Mack truck dealership in Butte, Montana and signed paperwork in the partnership name to purchase a $260,000 truck without T. Bieterman\'s knowledge.

The fact that this contract to purchase a new truck for the trucking business could be completely enforcable on the partnership even though the other partner wasn\'t aware of it\'s activity is an example of...

Limited Life

Mutual Agency

Co-ownership of Property

Picking a really bad partner.

None of the other answers

	A.	Limited Life
	B.	Mutual Agency
	C.	Co-ownership of Property
	D.	Picking a really bad partner.
	E.	None of the other answers

Solution

The given example is an example of Mutual Agency where all the partners act as agents for the operations of the partnership and their conducts are binding on other partners