Question
Alisa and Chantal run a partnership, which operates a news agency. Their news agency sells newspapers, magazines, stationery, as well as all the other usual
Alisa and Chantal run a partnership, which operates a news agency. Their news agency sells newspapers, magazines, stationery, as well as all the other usual things sold at news agents. Alisa and Chantal are partners in the business, and they have an old written agreement that states that neither will order goods or services over the value of $500 unless the contract contains signatures from both partners.
Alisa has been approached by a stationery supplier who offers the business the delivery of 100 calendar diaries. Alisa is convinced that the calendar diaries are good and will sell. So Alisa signs a contract with a promise to pay $1500 in instalments for the delivery of the magazines. Alisa does not consult Chantal before making this agreement.
The calendar diaries are delivered to their store and Chantal is very upset because Alisa has made an agreement without consulting her. They have a bad argument and Alisa goes home to recover from the stress of the argument.
In the meantime, Chantal calls the supplier of the calendar diaries and declares that the agreement to supply the products is not valid because it has breached their partnership agreement. She also tells the supplier that the products will be returned that the news agency will not pay anything for them.
Explain, with reference to the rules on partnership law:
1) Can Chantal by herself cancel the contract with stationery supplier?
2) Can the partnership be made liable for the actions of Alisa?
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