B, A, R, and T are partners in BART Enterprise, whose business is trading of second hand cars. B contributed Php120,000.00, A,Php60,000.00, R, Php40,000.00 and T, Php20,000.00. B was designated as manager. No other partner was given an authority to act for the partnership. Which of the following transactions entered into in behalf of the BART Enterprise will not be binding on it? The sale by B of second hand cars. The purchase of a delivery truck by A but the seller was not aware that A had no authority to purchase it. The purchase by B of second hand cars. The sale of second hand cars by R but the buyer had no knowledge that R was not authorized to sell.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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B, A, R, and T are partners in BART Enterprise, whose business is trading of second hand cars. B contributed Php120,000.00, A,Php60,000.00, R, Php40,000.00 and T, Php20,000.00. B was designated as manager. No other partner was given an authority to act for the partnership. Which of the following transactions entered into in behalf of the BART Enterprise will not be binding on it?

    1. The sale by B of second hand cars.
    2. The purchase of a delivery truck by A but the seller was not aware that A had no authority to purchase it.
    3. The purchase by B of second hand cars.
    4. The sale of second hand cars by R but the buyer had no knowledge that R was not authorized to sell.

 

 

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