1. A and B purchase a sailboat(which is in poor condition) with the intention of refurbishing it together and selling it when the work is completed. Are A and B partners.

2. X,Y, AND Z agree to carry on business in partnership under the firm name XY Plumbing. Y, in the course of partnership business, carelessly injures T. T intends to take legal action against the partnership for the injury, but is unaware that Z is a partner, since his name is not included in the partnership name. Is Z liable if T sues only X and Y?

3. Albert, Charles and Emily carry on business under the name ACE as a registered partnership. Emily wishes to retire from the partnership and allow Albert and Charles to carry on the business. What advice would you give Emily?

4. Alexander and Betty carry on a partnership Business. Carter is an employee of Alexander and Betty. Alexander informs Delbert, a supplier of the business, that Carter is authorized to purchase goods on credit for the partnership. Carter is later discharged by the partnership, but purchaser personal goods on credit from Delbert, as Delbert unaware that Carter is no longer employed by the partnership. Is the partnership liable for payment for the goods purchased by Carter? Explain.

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