Joe a Canadian citizen, entered into a general partnership with two other Canadian citizens in the establishment of a real estate sales agency. The other two, Sam and Harry, had considerable experience in the real estate business but no money. Joe, on the other hand, had his own home and several significant assets, and although he didn't have any experience in the real estate business, his monetary contribution made him an equal partner with Sam and Harry. Unfortunately, Harry misused some trust funds that had come into his care as a result of business, investing them in the business of one of his sons rather than in an interest-bearing account. The business of the son went sour and the money was lost. The client sued Harry, Sam, and Joe.

1. Explain, in detail, the concept of legal liability as it arises in a general partnership.

2. Explain the legal position of the client in respect of the partnership.

3. Explain the responsibilities and legal liabilities that exist between Harry, Sam and Joe.