Ham, Sam and Tam formed a partnership to run a petrol station. The partnership agreement expressly stated that the partnership business was to be limited exclusively to the sale of petrol. In January 2008 Sam received £10,000 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 February Tam entered into a £15,000 contract on behalf of the partnership to buy some used cars, which he hoped to sell from the garage forecourt. In March the partnership’s bank refused to honour its cheque for the payment of its monthly petrol account, on the basis that there were no funds in its account and it had reached its overdraft facility. Required: Advise Ham, Sam and Tam as to their various rights and liabilities in relation to partnership law. (10 marks) 【答案】 Sam has clearly used his powers for an unauthorised purpose. Unfortunately for the other partners they cannot repudiate his transaction with the bank, even although it was outside his actual authority. The reason being that it is within his implied authority as a partner to enter into such a transaction. As a trading partnership, all the members have the implied authority to borrow money on the credit of the firm and the bank would be under no duty to investigate the purpose to which the loan was to be put. As a result the partnership cannot repudiate the debt to the bank and each of the partners will be liable for its payment. It has to be stated, however, that Sam will be personally liable to the other partners for the £10,000 and as a further consequence of his breach of his duty not to act in any way prejudicial to the partnership business, the partnership could be wound up. Tam’s purchase of the used cars was also clearly outside of the express provision of the partnership agreement. Nonetheless the partnership would be liable as the transaction would be likely to be held to be within the implied authority of a partner in a garage business (Mercantile Credit v Garrod (1962)). Once again Tam, the partner in default of the agreement, would be liable to the other members for any loss sustained in the transaction. As regards the payment for the petrol, that is clearly within the ambit of the partnership and the members are all liable for non-payment. If the partnership cannot pay the outstanding debts then the individual partners will become personally liable for any outstanding debt. Although under s.9 of the Partnership Act 1890 partnership debts are said to be joint, the Civil Liability Act 1978 provides that a judgement against one partner does not bar a subsequent action against the other partners. Once the debts owed to outsiders have been dealt with, then the internal financial relationships of the partners amongst themselves will be dealt with according to the partnership agreement.  ACCA特许公认会计师F段+OBU本科学位班【签约班】                  高级商业会计证书+英国牛津布鲁克斯大学学士学位 不过重读1年                查看折扣  ACCA特许公认会计师P段【签约班】                                         名师授课，签约过

In relation

In relation

In relation to employment law, explain: (a) the grounds upon which dismissal may be fair; (5 marks) (b) the meaning and effect of constructive dismissal. (5 marks) 【答案】 (a) This question requires candidates to explain the provisions of the Employment Rights Act (ERA) 1996 relating to the statutory

In relation to private companies, explain the meaning of, and the procedure for passing, the following: (a) an ordinary and a special resolution; (5 marks) (b) a written resolution. (5 marks) 【答案】 Under the provisions of the Companies Act (CA) 2006 there are three types of resolutions: ordinary

, the exchange cleared Bennett from any wrongdoing. Which of the following best describes Bennett's conduct in relation to the CFA Institute Code of Ethics or Standards of Professional Conduct? Bennett: A. violated the standard relating to professionalism. B. did not violate any of the Code of Ethics

In relation to defences in the tort of negligence, explain the meaning of: (a) contributory negligence; (5 marks) (b) volenti non fit injuria (consent). (5 marks) 【答案】 A tort is a wrongful act against an individual which gives rise to a non-contractual civil claim. The claim is usually for damages

In relation

In relation to the English legal system, explain the main sources of contemporary law. (10 marks) 【答案】 This question requires the candidates to consider the various sources of United Kingdom law. Legislation This is law produced through the Parliamentary system. This is the most important source

】 As the scenario states, Astride entered into contracts with Bild Ltd and Chris, so there is no need to deal with the issue relating to the formation of contract, the problem clearly relates to breach of contract and the remedies available for such breach. In relation to the first contract with Bild Ltd