When a partner buys goods without authority, what is the outcome?

When a partner buys goods without authority, the partnership may still be bound to the transaction if certain conditions are met. The key factor is the concept of apparent authority, where a third party may reasonably believe that the partner has the authority to act on behalf of the partnership, particularly if they are unaware that the partner is acting without authority. If the transaction appears legitimate from the perspective of the third party, the partnership could be held accountable for those actions, even though the partner acted outside their authority.

This principle allows for the protection of third parties who are entering into transactions in good faith. It recognizes that allowing someone to rely on the apparent authority of a partner is an important aspect of commercial transactions to ensure stability and trust in business dealings.

In contrast, the other options present scenarios that wouldn't typically apply. The idea that the transaction is void and not binding, for instance, ignores the realities of apparent authority and the protections offered to third parties. Additionally, while it might seem logical that other partners must consent for liability, the focus here is on the authority that the third party perceives. Lastly, partnerships being unable to enter contracts post-dissolution is a completely separate issue that deals with the legal capacity of partnerships after cessation of business, which is not