Question Tag: Partnership Liability

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BCL – May 2021 – L1 – Q5b – Alternative Forms and Constitutions of Business Organisations

Advising on partnership liabilities and the consequences of breaching a partnership agreement.

Adjato and Hilda are in partnership, providing forensic services to the Ghana Police Service. The partnership agreement states that all scientific equipment is to be supplied by Johnny and that neither partner may incur a liability of more than GH¢3,000 without consulting the other. Although Adjato contributed all the Firm’s initial capital, he does not have any active involvement and rarely visits its premises. Hilda receives a salary and works full-time for the Firm.

Required:
It has come to the notice of Adjato that Hilda has ordered GH¢5,000 worth of equipment from Barclays Ltd without consent by both parties. Advise Adjato. (10 marks)

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BCL – May 2021 – L1 – Q5b – Alternative Forms and Constitutions of Business Organisations

Advising on partnership liabilities and the consequences of breaching a partnership agreement.

Adjato and Hilda are in partnership, providing forensic services to the Ghana Police Service. The partnership agreement states that all scientific equipment is to be supplied by Johnny and that neither partner may incur a liability of more than GH¢3,000 without consulting the other. Although Adjato contributed all the Firm’s initial capital, he does not have any active involvement and rarely visits its premises. Hilda receives a salary and works full-time for the Firm.

Required:
It has come to the notice of Adjato that Hilda has ordered GH¢5,000 worth of equipment from Barclays Ltd without consent by both parties. Advise Adjato. (10 marks)

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