Next Generation Bar Exam Quiz
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BUSINESS ASSOCIATIONS AND RELATIONSHIPS
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Dan, Eva, and Frank are partners in a business that operates three restaurants. Their partnership agreement is silent about the sale of partnership assets. Without consulting Eva or Frank, Dan signs a contract to sell the partnership's central commercial kitchen building, where all food for the three restaurants is prepared, to a real estate developer. The developer knows Dan is a partner, has no reason to think Eva and Frank were not consulted, and has already paid a substantial deposit. Eva and Frank want to cancel the sale.
Which of the following issues is most important in determining whether the partnership is bound by the contract to sell the building?
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