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Loulou and Aaliyah operate a partnership making and selling tomato sauce. A reduced supply of tomatoes has resulted in a fall in sales for their
Loulou and Aaliyah operate a partnership making and selling tomato sauce. A reduced supply of tomatoes has resulted in a fall in sales for their partnership business. Aaliyah purchased a large supply of glass jars on credit from a supplier of glass jars. The jars have to be paid within 30 days. The partnership does not have enough funds available to meet this expense. Aaliyah never consulted Loulou when she bought the glass jars. Now Loulou is demanding that Aaliyah pay for them out of her personal savings, and not from partnership funds. Required: a) What is a partnership? Outline the legal issues involved in the formation of N a partnership. (4 marks) b) Explain the legal consequences arising from Loulou and Aaliyah's situation. Is the partnership liable to pay for the glass jars that Aaliyah ordered? (6 marks)
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