Four friends - Anne, Mary, Jane and Sarah - who met at university graduate as medical

practitioners in the same year. Because they all get on so well and trust each other's

judgement, they decide to form a partnership of general practitioners in Western Sydney, which

they call Your Local Doctor. They sign a partnership agreement in terms of which they are all

equal partners. The agreement also states that each partner will have authority to enter into

contracts of up to $ 10 000, but that contracts in excess of that amount require the agreement

of all the partners.

Anne and Mary go overseas one year, leaving Jane and Sarah to run the practice. When they

return, they discover that the following has happened:

Just before she went away, Anne had noticed that the practice had almost run out of paper

for the printer, so she left a note for Jane, asking her to order a new supply. When Anne and

Mary returned, they found that Jane had paid $ 2 000 to buy printer papers from a business

run by her boyfriend, whereas the usual supplier would have charged $ 1 200 for the same

amount of paper. They are also displeased to find two invoices, addressed to Your Local Doctor,

awaiting payment: One is from United Medical Suppliers Pty Ltd for $ 13 000 worth of medical

instruments ordered by Jane. The other is for $ 2 000 from Uber Australia Ltd for driver training

course ordered by Sarah, who had previously argued that the four doctors should run a local

ride-share service on days when the practice was not busy.

Advise Anne and Mary as to what liabilities arise from the above facts, citing relevant legal

authority