-Business relationships

Ricky, Tim and PJ own a native plant nursery (i.e. selling Australian plants) called Aussie Native Trees ('Aussies').Ricky and Tim have run the day to day operations of the business for the past 4 years whilst PJ has assumed the role of purchasing agent; requiring PJ to purchase native plants for the nursery. PJ has a business card, supplied by Aussies, stating that he is their purchasing agent.

In April 2018, 'Aussies' decided to 'branch out' (expand the business), buying orchids from Southern Asia to sell in their nursery. Ricky, Tim and PJ agreed that PJ could purchase up to, but no more than, $30,000 worth of orchids from a reputable seller. In late September 2018, PJ went directly to a plant wholesaler with whom he had dealt with before, 'Kingdom Plants' (Kingdom). Unbeknown to Ricky and Tim, PJ liked dealing with Kingdom, because they always paid to him, in cash, a first class return airfare to Asia and gave him a week of 5 star accommodation each year, so that he could place orders for Aussies.

During PJ's most recent trip, he ordered $40,000 worth of orchids from Kingdom, who knew nothing about the $30,000 restriction. By early October 2018 a downturn in business started to affect the revenue of Aussies, so the business decided to no longer purchase and sell orchids. A few days later Aussies received the bill from Kingdom for $40,000, but have refused to pay arguing that PJ did not have permission to purchase the orchids. Ricky and Tim were furious when they found out that PJ had not disclosed the fact that Kingdom paid his airfares. They have also since found out that PJ has used his connection to Kingdom to set up another business (AMM) selling Asian made motor-mowers over the phone using Aussies' client list.

Advise Aussies using ONLY the Partnership Act 1891 (Qld) and the common law (from the Partnership notes/chapter - you do not need to apply any cases from the agency notes/chapter).

Q: Please use ILAC method to access the case.