Australian Law Corporations Act 2001

Newly graduated from medical school, David and Mary have decided to take over a medical practice together in Saltbush, a small NSW country town. This decision was made after seeing the official announcement of the retirement of its two elderly doctors and the closure of their Saltbush practice. David and Mary have no plans to expand in the future but are wondering whether a partnership is the best legal structure for their business.

Please advise the following:

(a) How does the law regulate partnerships?

(b) Describe the advantages and disadvantages of a partnership structure?

(c) David and Mary discover that the retired doctors operated the Saltbush business as a partnership for over 40 years and had incurred a number of large debts that remain unpaid. If David and Mary take over the medical practice advise if they will be liable for these debts?