Clarice, Jenna and Phillip are in partnership. Their interior design and home decoration business is called "Premier Designers." All three partners are qualified to provide design services and supply materials including furniture, curtains, carpets, and other accessories for interior decoration. There is no written partnership agreement between Clarice, Jenna and Phillip. They have been running the business for the last three years and have been splitting the profits equally.

Clarice usually does the buying for the firm. She often travels to Singapore to buy accessories and materials for the business. This year prior to her leaving for Singapore, she , along with Jenna and Phillip, decided that they will not make any purchase beyond $40,000 without the express consent of each other as the business is facing some liquidity difficulties.

Clarice travelled to Singapore and became very interested in a particular interior designer Po Lim. His designs were quite exclusive and for Clarice to place an order she needed to spend a minimum of $75,000. Clarice believed introducing Po's curtain designs into the Australian market would be fantastic for the business and so she signed a purchase order on behalf of Premier Designs and paid a deposit of $20,000 using the partnership's credit card believing that Jenna and Phillip would not mind once they saw the curtain materials.

Meanwhile Jenna has been designing carpets which she has sold to her friends on an intermittent basis. One of her friends, Timothy asks Jenna if she would like to join his new shop as a carpet buyer where she could sell carpets on commission as well as design carpets. Jenna agrees but does not mention it to either Clarice or Phillip. Jenna has earned a substantial commission in the last six months where she could sell carpets on commission as well as design carpets. Jenna agrees but doe not mention it to either Clarice or Phillip. Jenna has earned a substantial commission in the last six months amounting to $16,000.

Please answer the following questions using the ILAC format. Students should cite relevant case law and sections of the Partnership Act 1891 (QLD) to support their arguments.

1. Advise Jenna and Phillip as to whether they are liable to pay for Clarice curtain purchases from Po Lim.
2. Advise Clarice and Phillip as to whether Jenna has breached any duties to the firm and what money the firm can recover from her (if any)
3. Phillip has concerns about whether he should bring the partnership to an end, or at least remove Jenna from the partnership. Because he cannot trust her. Advise Phillip about his options to expel Jenna or dissolve the partnership.