Chris, Mitchell and Lachlan operate a herb farm in the Yarra Valley. Their business is structured as a partnership. They are equal partners in the partnership and have agreed that each may make purchases for the business up to the value of $5,000. Any purchase above

$5,000 for the business must be agreed to by all partners in advance. One day, Chris decides on his own initiative to buy a second hand tractor in order to increase productivity. The tractor cost $25,000. He did not consult the others about the purchase and bought the tractor on credit with finance provided by the seller at a rate of interest five times the normal

rate. When the others found out, they were furious.

Advise Mitchell and Lachlan whether they can be held liable for the purchase of the tractor under the law ofpartnerships. Please ensure that you use relevant authority in support of your answer (ie: cases and/or legislation).