Lira, Peso, Rupee and Yuan are partners in LPRY & Associates, a well-known general partnership in house decorating. When they set up the firm in 2010, they had agreed to contribute into the firm based on their financial capacity. Lira, a wealthy lady, contributed RM50K, Peso contributed RM10K, Rupee contributed RM15K and Yuan contributed RM25K. The partners have entrusted Peso to manage the firm as the others have other businesses. The partners have unanimously consented that Peso is to be paid RM5K a month for being the firm's managing partner. Recently Lira's daughter, Sara (who is currently taking a course on business law), has informed Lira that LPRY & Associates must comply the provisions in section 26 (a), section 26(e) and section 26 (f) of the Partnership Act 1961. Sara is of the opinion that the arrangements made between Peso and the other partners are against the Partnership Act 1961. Peso is in a state of panic and he is seeking your advice.

Required:

Advise Peso whether Sara's contention is right by using IRAC Method.