The "you are not allowed to share this with external users" Error when trying to share with others error.
By default, Office365 as of 7/15/2015 version, has external sharing of documents and links turned off.
Just go to your ADMIN Section, SERVICE SETTINGS then SITES
First heading in right column: external sharing
First heading in right column: external sharing
Allow external users to access your team site and documents.
Learn more
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