You and the others have now all signed a partnership agreement which gives all decision-making power to you and James. Peter has shown a great interest in the shop, and has been coming in regularly to say hello and talk to customers. He always wears the custom-made Beatles t-shirt you have provided to anyone working in the shop. One day, one of the customers (Betty) is in the shop and tells Peter she has some Beatles memorabilia for sale, and Peter arranges to go to Betty’s house with Graham to see it. Peter and Graham immediately tell Betty that they will buy $5,000 worth of her memorabilia. They take it from her to the shop the next day, with a promise to Betty to send a cheque the following day. You are horrified that Peter and Graham have taken it upon themselves to act on behalf of the partnership, especially when you hear how much they have agreed to pay for it. You tell them the partnership is not going to pay for it.
Is the partnership liable for the memorabilia purchased from Betty?
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