Joe, Ali, Chan and Kadir are partners of an interior design firm known as JACK Associates. They became partners three years ago. They agreed that any contract worth RM200,000 and above would require the approval and signatures of all partners. In December 2019, Joe had fallen seriously ill and was hospitalised for two months. At that time JACK Associates was successful in obtaining the tender to renovate the rooms and halls of Hotel Laksmana. The other partners signed the contract to renovate the hotel without Joe's knowledge or approval. They were concerned over Joe's illness and wanted him to recuperate peacefully. During the renovation works, Madonna, one of the hotel's guests was injured when beams fell onto her head. It seems there were no signage whatsoever to indicate that work is in progress.Joe is unhappy that the contract was signed without his knowledge and consent, and refused to have anything to do with it.

Joe found out that Kadir had promised to pay three of the Hotel's maintenance crew RM100 an hour outside their official duty with the Hotel, if they were to assist in the renovations. Kadir have just realised that the payment promised was too high and decided to pay them at half the amount after they claimed for RM10,000 for the services they have rendered. The three hotel crew is now contemplating legal action against JACK Associates for the remaining sum unpaid.

Ali, Chan and Kadir are proposing to convert the firm into a Limited Liability Partnership, but Joe is against it. They are persuading him to see the benefit of the conversion. Joe no longer wishes to continue as a partner, and wants to end his relationship with the others.

Discuss the following matters:

a.Liability for Madonna's injury

b.Liability towards the hotel crew

c.Dissolution of the partnership

d.Advantage and disadvantage of a Limited Liability Partnership