Fina, Jae and Luna are partners in a laundry business under the name Clean N Crisp. Fina had bought two new washing machines worth RM15 000 from Famous Electric on credit under the firm's name.

Luna entered into a contract of loan for RM80 000 with Finance Sdn Bhd. The money was credited in the firm's account but Luna took RM8 000 out of the money to pay her personal notebook computer.

Last week, the firm received claims from Finance Sdn.Bhd for two-defaulted payment of the loan. Fina who was angry with Luna for taking the firm's money to buy personal notebook refused to pay the loan and claimed that the firm is not responsible for the loan, as Luna has no authority to enter into any transaction above RM50 000.

Luna, on the other hand, told Fina that the firm will not pay the bill issued by Famous Electric on the ground that Fina has no authority to buy assets without her consent.

Yesterday Jae had senttwo months notice to retire from the partnership.

Advise:

a.)Whether the firm would be liable to the debts made by the partners with Finance Sdn. Bhd and Famous Electric.

b.)Whether Jae will also be liable for the above debts since she had tendered her retirement as a partner.