What type of liability arises when a partner acts within their apparent authority?

When a partner acts within their apparent authority, the type of liability that arises is solidary liability. In a partnership, each partner is generally considered an agent of the partnership and has the authority to bind the partnership in transactions that are within the scope of the partnership's business, even if they do not have explicit authority from the other partners.

Apparent authority refers to a situation where a third party reasonably believes that a partner has the authority to act on behalf of the partnership based on the partner's behavior or the representations made by the partnership. If a partner with apparent authority enters into a contract or engages in activities that fall within the scope of the partnership's operations, all partners can be held solidarily liable for the obligations created. This means that a third party can pursue any one partner for the entire amount owed, and that partner can seek contribution from the other partners.

This concept is fundamental in partnership law as it reinforces the notion that partners must remain vigilant about the actions of their co-partners and ensures that third parties can rely on the apparent authority of partners when entering into contracts with the partnership. The unity of liability in this context serves to protect the interests of those dealing with the partnership.

Other types of liability mentioned do not adequately