Merry and Pipin were partners in a firm, operating a car wash business. Merry took a loan amounting to RM10,000 from Frodo as a capital for the firm's business. The loan was guaranteed by Sam. The firm failed to pay the loan and Sam had to pay instead. Sam took legal action against both, Merry and Pipin to recover his money. However, Pipin did not admit such liability and decided to retire from the partnership. Advise Pipin.

Discuss the legal implication(s) based on thePartnership Act 1961.