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BTF Week 10 - Coggle Diagram

- - - - Agent has ACTUAL authority to do X (given to the agent by the principal).
    - - Agent APPEARS TO OTHERS to have authority to do X. How things appear to third parties who are dealing with the agent.
- - - - Contratual relationship
        
        Partnership agreement
        
        Oral or written or implied by conduct.
      - Fiduciary relationship
        
        Partnership is founded on mutual trust and confidence
        
        Act in good faith for the benefit of the partnership
        
        Avoid any actual or potential conflict of interest
        
        Make full disclosure toward each other
      - Agency relationship
        
        Partners are both principals and agents of each other.
      - Rights and duties under the common law and statute
        
        Statutory duties (reflect common law fiduciary duties).
  - - - Debts and obligations (ie. contracts) – ss.9 and 13
        
        Each partner is liable jointly with the other partners for all debts and obligations of the firm incurred while he/she is a partner: s.13.
        
        Each partner is jointly liable up to the full amount (all debts of the firm).
        
        S 9:Did the third party know there was no authority or not know or believe they were dealing with a partner?
      - Wrongful acts and omissions – ss.14 and 16.
        
        Each partner is liable for any loss or harm caused to a third person while acting ‘in the ordinary course of the business of the partnership’ or ‘with the authority of the co-partners’: s.14
        
        Joint and several liability – s.16