Lu And Cawan Are Partners In A Firm Dealing With Boat Case Study

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Question 2 Sudu and Cawan are partners in a firm dealing with boat. Cawan, at the age of 15 years old entered into a contract to buy a new luxury yacht from Kapal Api Sdn Bhd without the knowledge and consent from Sudu. Kapal Api Sdn Bhd now claims the price of the yacht from the firm. Discuss the liability of Sudu in the above situation. Answer -Whether the firm and other partner are liable? - Whether Sudu are liable jointly for the debt and obligation incurred when they are partners? - Whether Kapal Api Sdn Bhd can claim the price of the yacht from the firm? According to section 7 of Partnership 1961, every partner is an agent of the firm and other partners for the purpose of the business of the partnership. The act of every partners who does any act of carrying on in a usual way of business will bind the firm and his co-partners except if the firm gives no authority to him to do the act, third party knows that he has no authority, third party does not know him and third party does not believe him as partner.…show more content…
He gave her a receipt under the firm’s name and the money was credited to the partnership account. There was no payment made for the loan and the plaintiff took action against the firm. The other partner contended that the plaintiff’s husband has no authority to borrow on behalf of the firm. It was held that borrowing money was an act necessary for carrying on the partnership business. Therefore, the other partners are bound by the plaintiff’s husband’s
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