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Marge, Maree and Myrtle operate a trucking partnership. Marge, who has no idea how to run a business, has done the following acts without the

Marge, Maree and Myrtle operate a trucking partnership. Marge, who has no idea how to run a business, has done the following acts without the knowledge of the other partners.

(a) She has mortgaged two trucks, and a block of land owned by the firm, to secure a loan of

$50,000. This money has been used by the firm.

(b) She has purchased on credit in the firm's name

  • Christmas presents for Maree and Myrtle
  • 200 new the firm's fleet of 7 trucks.

(c) She has employed a new driver who crashes the firm's truck into a neighbouring fence on his first day on the job. It is then discovered he has never driven a truck before. The repair bill for the fence is $1,000.

(d) She has drawn several partnership cheques to pay for her groceries.

To what extent are (i) Maree and Myrtle liable, and (ii) is Marge liable to Maree and Myrtle

in respect of the above? Could Marge be expelled from all future participation in partnership management?

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