Armin and Eren operated a toy shop business in Melbourne under the name Jaeger Toys. They started the business in 2015 and rented an office and shop in the city which were rented from Titan Pty Ltd. At the time of starting their venture, Armin contributed $25,000 to the business, and Eren brought in the equipment such as computers and desks, valued at $50,000.Armin took care of the marketing and promotion, while Eren concentrated on the retail and administrative operations. Both have the authority to purchase stock limited to $10,000. If exceeding this amount, the transaction must be approved by both Armin and Eren

In the last four years of business operations, several problematic transactions occurred including:

1. The stores usual toy supplier had a special discount for large orders, which prompted Eren to place an order of $30,000 worth of toys -three times the usual size of orders. When the invoice arrived, Armin isputed that the business should pay for the amount, arguing Eren did not have the actual authority to buy the stock at that price and the toy supplier should have known this given their regular dealings.

2. Eren failed to disclose to Armin that he has been selling some of the toys in Amazon and eBay under a different business name. Eren planned to keep all the profits to himself.

3. Armin borrowed $10,000 from the Monash Bank to purchase a large order of Fortnite toys as it was predicted to be the most popular toys to buy for Christmas after extensive market research and consultation with experts. However waning interest for the toy line has resulted in less than expected sales. Jaeger Toys is unable to pay the debt and Monash Bank claims Armin's decision breached his duty to exercise reasonable care and skill.

4. Eren supervised the installation of a new electrical system in the workshop when Armin was away. He used a low-cost electrician who had lost his license some years ago. Unfortunately, the poor quality of the work led to a fire that almost destroyed the workshop. The loss for Titan Pty Ltd is $500,000

A. Assume Jaeger Toys is a Partnership business. Advise whether:

The partners (Armin and Eren) are liable to pay the $30,000 debt under the Partnership Act?

B. Assume Jaeger Toys is a Partnership business. Advise whether: Eren can keep the profits from his online business to himself

C. Assume Jaeger Toys is a Partnership business. Advise whether: The partners are liable to pay the $500,000 loss to Titan Pty Ltd.