Babak and Cal Are Partners in a Restaurant Business

Multiple Choice

Babak and Cal are partners in a restaurant business. Their partnership agreement says that Babak does not have authority to sign contracts for supplies for the partnership business. Babak contracted with Doris for the supply of 10 kilos of haddock for the partnership. Which of the following is TRUE?

A) The contract is binding on the partnership if Doris thought that Cal was a partner.
B) The contract is binding on the partnership, but Cal is not personally responsible for the contract.
C) The contract is not binding on the partnership.
D) The contract is not binding on the partnership unless Doris asked Babak if he had authority to contract on behalf of the partnership.
E) The contract is binding on the partnership unless Doris knew that Babak did not have authority to contract.