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B is corrent because when the third party knows that the partner with whom he deals lacks actual authority, there can be no apparent authority. With such knowledge, the third party can no longer reasonably believe that the partner has authority to represent the partnership.
A is incorrect because a third party who has no notice of the dissolution of the partnership may reasonably believe that a partner who is conducting partnership business in the usual way has authority to do so. Under such circumstances, the partner has apparent authority and thus may bind the partnership.
C is incorrect because if the sale of real estate is within the regular course of a partnership’s business, a partner has apparent authority to convey real property held in the partnership name.
D is incorrect because the partnership will be bound to an agreement entered into by a partner who had the express authority to act. The third party’s lack of knowledge of the partner’s express authority will not limit the ability of the partner to bind the partnership.