Four friends - Ella, Justin, Michael and Beth - who met at university, graduate as accountants in the same year. Because they all get on so well and trust each others judgement, they decide to form a partnership of accountants which they call JustAcc. 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.

Ella and Justin go overseas one year, leaving Michael and Beth to run the business. When they return, they discover that the following has happened.

Just before she went away, Ella noticed that the business had almost run out of printer paper, so she left a note for Beth, asking her to order new supply. When Ella and Justin returned, they found that Beth had paid $5,000 to buy printer paper from a business run by her life partner, whereas the usual supplier would have charged only $2,500 for the same printer paper. They are also displeased to find two invoices, addressed to JustAcc, awaiting payments: One is from OfficeMaximus Stationary stores Pty Ltd for $13,000 worth of laptops and accounting software ordered by Michael. The other is for $3,000 from Uber Australia Ltd for driver training course ordered by Michael, who had previously argued that the four accountants should run a local ride-share service on days when the business was not busy.

Using ILAC (Issue, Law, Application and Conclusion) Advise Ella and Justin as to what liabilities arise from the above facts, citing relevant Australian legal authority.