What legal principle protects a partnership in case of a partner's unauthorized act?

The correct answer is based on the legal principle that a partnership can indeed be held liable for a partner's unauthorized acts if those acts fall within the scope of the partnership's business purposes. This principle is grounded in the concept of agency, where partners act as agents of the partnership. When a partner engages in conduct that is intended to advance the interests of the partnership or is generally related to partnership activities, the partnership can be held responsible for the consequences of that partner's actions.

This means that even if a partner did not have explicit authority to perform a certain act, if the act was within the range of activities typically conducted by the partnership, the partnership may still incur liability. This protects third parties who rely on a partner's representations during the ordinary course of business.

In contrast, options discussing personal liability regardless of authority or the reliance solely on written agreements do not accurately capture the broader legal responsibilities of partnerships. Furthermore, suggesting that partnerships are not liable if a partner had no authority overlooks the significant principle that actions taken in furtherance of the partnership's objectives can still bind the entity. Thus, the focus is on the relationship between the actions taken and the partnership's business purposes, which serves as the foundation of partnership liability.