Question

Kristin and Lindsey are partners in Mobile Devise, an online marketing firm.Refer to Fact Pattern 16-1. Lindsey dissociates from Mobile. Kristin signs a contract with Organic Olives, a food seller, apparently on Mobile’s behalf. Organic Olives does not know of Lindsey’s dissociation. The contract is binding on​a. Kristin only.b. Mobile only.c. Kristin, Lindsey, and Mobile.d. Organic Olives only.

Answer 1

c. Kristin, Lindsey, and Mobile

Step-by-step explanation:

A partner is a member in a partnership, an entity in which both the profits or losses of a business or other venture are shared between all members. Corporations favor partnerships because of a taxation structure that eliminates dividend taxes upon the profits of owners.

In this scenario Kristin signs a contract with Organic Olives on behalf of Mobile Devise.

Since the contract is binding on Mobile, Lindsey is also bound by the contract because she is a partner.

Therefore Kristin, Lindsey, and Mobile are bound by the contract.

Answer 2

Kristin, Lindsey, and Mobile.

Step-by-step explanation:

Partnerships are formed when two or more people pool their resources in a business venture with aim of acieblving an objective

In general partnerships the liability is unlimited. That means any liability that concerns the business is borne by the partners.

In this scenario Kristin signs a contract with Organic Olives on behalf of Mobile Devise.

Since the contract is binding on Mobile, Lindsey is also bound by the contract because she is a partner.

Therefore Kristin, Lindsey, and Mobile are bound by the contract.