In the case of GREAT Company, which contract will the partnership be bound by?

In partnership law, a partnership is generally bound by contracts that are entered into by its partners in the course of the partnership's business activities, as long as those partners have the authority to act on behalf of the partnership.

In the scenario with GREAT Company, the first contract with Juan Torres would likely bind the partnership if it was entered into in the context of the partnership’s business and if the partner who made the contract had the authority to do so, whether through express or implied authority.

Implied authority allows a partner to act in ways that further the partnership's goals and normal operations, provided those actions are within the scope of business activities typically associated with that partnership's operations. If the first contract aligns with these criteria and the partner had the authority, then GREAT Company would be bound by that contract.

While the second contract with Intrepid Motors could potentially bind the partnership as well, its binding nature would depend on whether the partner had the authority to enter that specific contract on behalf of the partnership. If it is determined that the partnership did not authorize nor benefit from that specific contract, then the correct binding contract would be the first one.

This principle emphasizes the importance of authority within partnerships and how it can affect the validity and enforceability of