Mary and Ashley are partners who operate a wedding venue in Melbourne called ScarletWedz. The written terms of their partnership agreement provide: 1. Mary and Ashley are to share profits equally. 2. Any purchase of goods or services greater than $1,000 must be approved by both Mary and Ashley. In the first year of operations, ScarletWedz does reasonably well. Mary who manages the financial accounts pays herself an extra 10% from the profits and salary of $20,000 without informing Ashley. When Ashley finds out Mary paid herself the extra profits and salary, she becomes furious and claims she is not entitled to the additional payments. Mary however claims she should be rewarded for working harder in the business than Ashley. a) Advise Mary whether she is entitled to the extra profits and salary under their agreement and the Partnership Act 1958 (Vic.) 5 marks A v B I U X2 E E ABC G 123 CWhile Ashley is on holiday, Mary offers ScarletWedz as the venue for her friend Elizabeth's wedding, at the discount price of $5,000 (usually $10,000). Additionally, Mary engages with LimoRUS to hire two limousines for Elizabeth's wedding at a discounted price of $3,000 (the lease would have normally cost $6,000). The discount is a result of Mary promising the manager that as the co-partner of ScarletWedz, LimoRUS will be the exclusive supplier of limousines for the firm. The manager, however, is aware that Mary does not have the authority to hire the limousines without Ashley's permission but decides to charge the partnership since he knows Mary cannot afford the expense herself. Ashley later discovers an invoice of $3,000 from LimoRUS. She demands that Mary pay for the cost as she did not approve it. b) Advise whether Mary had the authority to hire the two limousines and whether the partnership would be liable to pay for the limousines under the Partnership Act 1958 (Vic). 7 marks A v B U X2 x2 E ABC 123 G C