Under what condition can a partnership be held liable for an unauthorized act by a partner?

A partnership can be held liable for an unauthorized act by a partner if the act appears to involve partnership operations. This principle is rooted in the legal doctrine of apparent authority, which grants third parties the ability to rely on the representations made by the partner acting on behalf of the partnership. If the partner's actions seem to fall within the scope of partnership business or operations, the partnership may be held liable for any consequences that arise from those actions, even if they were unauthorized by the other partners.

This reflects the idea that partnerships function as a single entity in the eyes of third parties. Thus, when a partner engages in what looks like typical partnership activity, the partnership can be seen as responsible for the outcomes of those actions. This ensures that third parties can confidently engage with a partnership, knowing that they have recourse against the partnership as a whole, rather than being left to determine whether a particular partner had the authority to act in a given situation.

The other conditions listed do not support liability in the same way; if the third party is aware of the lack of authority or if the act does not relate to partnership business, the partnership typically cannot be held responsible. Similarly, if the act was purely for personal gain and disconnected from partnership affairs, it