Harris negligently hit a car driven by Cook, who brought this action against Harris and Phillips individually and as copartners for his injuries. Who is liable? Explain.
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Phillips and Harris are partners in a used car business. Under their oral partnership, each has an equal voice in the conduct and management of the business. Because of their irregular business hours, the two further agreed that they could use any partnership vehicle as desired. This use includes transportation to and from work, even though the vehicles are for sale at all times. Harris conducted partnership business both at the used car lot and from his home. He was on call by Phillips or customers at his home, and he went back to the lot two or three times after going home. While driving a partnership vehicle home from the used car lot, Harris negligently hit a car driven by Cook, who brought this action against Harris and Phillips individually and as copartners for his injuries. Who is liable? Explain. |
Explanation
Agency relationship is a relationship between an agent and its principal. Agent performs work for and on behalf of the principal and principal exercises control over agent. In the same way, a partnership works. Individual partners are considered as an agent of the partnership and also of another partner. Work conducted by partners are binding on partnership. So, the partnership can be held liable for partners' act. In this case, accident conducted by Person H will be binding on both the partnership firm and the other Partner, Person P.
Verified Answer
In this case, both partnership firm and individual partners of the firm can be held liable for the accident as partners and partnership firm have agency relationship.
