PARTNERSHIP

ASSIGNMENT
(MTQ)

PARTNERSHIP

Q1. Ham, Sam and Tam formed a partnership to run a petrol station.
The partnership agreement expressly state that the partnership
business was to be limited exclusively to the sale of petrol.
In Jan 2016, Sam received RM10,000 from the partnership's bank
drawn on its overdraft facility. He told the bank that the money was to
finance a short-term partnership debt, but in fact he used the money
to pay for a round the world cruise.
In Feb 2016, Tam signed a RM15,000 contract on behalf of the
partnership to buy a stock of bicycles, which he hoped to sell from the
garage forecourt. In March 2016, the partnership's bank refused to
our its cheque fro the payment of its monthly petroy account, on the
basis that there were no funds in its account and it had reached its
overdraft facility.
(a) Explain the liability of the partners for the bak overdraft.
(b) Explain the liability of the partners fro the contract to buy the
bicycles.
(c) Explain the liability of the partners for the petrol account.

PARTNERSHIP

Q2. Gary, Alex and Sam formed a partnership to run a internet cafe.
The partnership agreement expressly stated that the partnership
business was to be limited exclusively to the sale of beverages.
In January 1, 2015, Alex received RM10,000 from the partnership's
bank dawn on its overdraft facility. He told the bank that the money
was to finance a short-term partnership debt, but in fact he used the
money to pay for a trip to Alaska. In February 10, 2015, Sam signed
a RM15,000 contract on behalf of the partnership to buy ten racing
bikes, which he hoped to sell from the garage. In March 2, 2015, the
partnership's bank refused to honour its cheque for the payment of
its monthly food account account, on the basis that there were no
more funds left in its account and it had reached its overdraft facility.
(a) Explain the liability of the partners for the bank overdraft.
(b) Explain the liabaility of the partners for the contract to buy the
racing bikes.
(c) Explain the liability of the partners for the beverages account.

PARTNERSHIP
Q3. Chi, Di and Fi formed an ordinary partnership to run an art gallery.
Each of them paid RM100,000 into the business. As Fi had no
prospect of raising any more money, it was agreed between them that
her maximum liability for any partnership deebts would be fixed at her
original contribution of RM!00,000. The partnership agreement
specifically restricted the scope of the partnership usiness to the sale
of 'paintings, scupltures and other works of art'.
In Jan 2016, Chi took RM10,000 from the partnership's bank, drawn
on its overdraft facility. She had told the bank that the money was to
finance a short term partnership debt, but in fact she used the money
to pay for a holiday.
In Feb 2016, Di entered into a RM25,000 contract o behalf of the
partnership to buy some books, which she hoped to sell in the gallery.
(a) State whether all three partners are liable to repay the overdraft
created by Chi.
(b) State the type of authority di had to purchase the books
(c) State the liability of Fi for the partnership's debts.

PARTNERSHIP

Q4. Chan and Danny are partners in CD & Co, a firm which deals in
the sale and purchase of second hand books. Recently, Chan and
Dan decided to give Emma, their long serving employee, a right to
receive 10% of the firm's annual net profits as a bonus. Emma was
delighted about this.
Last week, Emma agreed to sell to a customer a van belonging to
the firm. However, Chan and Dan refused to allow the customer to
take delivery of the van, stating that Emma had no right to sell the
van belonging to the firm.

(a) State whether Emma has become a partner in CD & Co.

(b) Assume that Emma has become a partner, and state whether
Chan and Dan are legally bound to sell the van to the customer.
(c) In the event Chan wishes to retire from the firm, describe how he
may do so.