Krishna and Ravi Operate a Sari Store as a Partnership

Multiple Choice

Krishna and Ravi operate a sari store as a partnership. They agree privately that they will not order supplies over $10,000 without both signatures. When Krishna is on vacation, Ravi orders $20,000 worth of silk. Krishna objects to paying the supplier and wants to return the shipment. The supplier sues the partnership. Which of the following is true?

A) the partnership must pay the supplier because private restrictions don't affect outsiders to the partnership
B) the partnership must pay because it owes a fiduciary duty to the supplier
C) the partnership does not have to pay because Ravi exceeded her authority
D) the partnership does not have to pay because Ravi exceeded her apparent authority.
E) the supplier has to take back the shipment since there were not two signatures on the contract