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May a partner bind the partnership for acts that are not within the scope of the partnerships business but appear to be related to the partnership?

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Final answer:

In a general partnership, partners typically have the right to bind the partnership for business-related acts, but for those outside the scope, consent may be required. In a limited liability partnership (LLP), this authority is further restricted to protect partners' personal assets. The specific agreement and laws ultimately guide the scope of each partner's binding authority.

Step-by-step explanation:

Whether a partner may bind the partnership for acts that are not within the scope of the partnership's business but appear to be related depends on the type of partnership and the circumstances under which the act is conducted. In a general partnership, partners usually have the authority to bind the partnership for acts that are in the ordinary course of business. However, for acts that are not within the scope of the partnership's business, such authority is not assumed, and additional consent from the other partners may be necessary.

On the other hand, a limited liability partnership (LLP) differs in that it provides protection for the partners against personal liability for certain partnership obligations. This means that partners may have less authority to bind the entire partnership for acts outside the traditional scope of the business, as the potential risk to other partners' personal assets is minimized.

It's important to note the apparent authority that partners might have, which can create binding obligations if third parties are led to believe reasonably that the act falls within the scope of the partnership's business. In any case, the specific partnership agreement and state laws will further dictate the extent of each partner's authority.

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