Tutorial 1 Partnership Law
Question 1 (Autumn 2010)
Gary, Mark and Jason are partners in a printing firm. On formation of the partnership all three of the partners agreed that the day-to-day business of the firm was to be left to Gary but that he would not have the authority to buy more than €10,000 worth of goods on credit without the unanimous consent of the other partners. When a paper merchant from Envibe Ltd visits the firm Gary contracts to buy €20,000 worth of paper and stationery from this company, which is supplied to the firm on favourable credit terms. Payment is now due but the firm does not have sufficient funds to pay any of the money owed and is refusing payment on the basis that Gary was not empowered to create the contract.
A. Critically review whether the firm is legally obliged to pay the sum due to Envibe Ltd on foot of the contract, and whether Gary has breached his duties as a partner in creating this contract.
B. Evaluate whether Mark and Jason can expel Gary from the partnership, on the basis of his alleged breach of duties.
C. Mark and Jason are considering merging the firm with another firm, which already has 20 partners. In this regard assess the membership requirements imposed upon partnerships by virtue of the Partnership Act 1890, as well as the powers bestowed upon partners under the terms of this legislation and in light of this discussion verify whether the proposed merger is a viable option.
D. Explain the meaning of the words “and Co.” after the name of a partnership firm.
(Total 25 marks)
Question 2 (Summer 2009)
Michael, Matt and Martin are equal partners in a partnership that was established for the purpose of selling overseas property. Business is booming. However, Michael and Matt have recently discovered that Martin has set up a firm that is competing directly against the partnership. In addition, it appears that... [continues]
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