Question
Jamie and Greg have a business called Copythat , that leases photocopiers to commercial clients. Greg is responsible for accounting and finance functions while Jamie
Jamie and Greg have a business calledCopythat, that leases photocopiers to commercial clients. Greg is responsible for accounting and finance functions while Jamie is responsible for purchases and customer service. The agreement that they both signed when they started the business states that they will only buy toner for the photocopiers from a business called Toners are Great, which is a business, which specialises in high quality toner. Jamie provides toner to all Copythat clients at the start of each month. In order to save costs, Jamie decides to buy the toner from a private supplier and does not inform Greg or Toners are Great. At the start of February, he provides the toner to clients. The toner is of poor quality and an important client, Concord Logistics, sues Copythat for damages, arguing that its business has suffered greatly from the poor quality of the product provided by Copythat. Greg argues that he is not jointly liable since James acted contrary to their agreement.
a)Are Jamie and Greg partners of a partnership business? Explain your answer with reference to relevant sections of the Partnerships Act 1958 (Vic) and relevant cases.
b) Discuss whether Concord Logistics can sue the partners of Copythat for damages caused by Jamie's actions. Use cases and statutory provisions of thePartnerships Act 1958(Vic) to support your answer.
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