Mike and Raj decide to open up a shop that sells takeaway Indian food. They call it 'Curry in a Hurry'. They agree that Raj is to be the chef and will be solely responsible in this area. Mike is to take on a management role and be responsible for buying utensils, kitchen products and groceries and storing and packaging of food products. Janice, a friend of Mike has agreed to help them financially with the starting of the business by lending them $15,000, provided she is repaid out of the profits for the next two years.

In April of this year Raj visits his friend Jake who owns a shop in the city called Kitchen King. Jake shows him one of his new products, COOKTEC, that costs $9000. COOKTEC can do almost everything in the kitchen, from peeling and chopping onions to blending purees, grinding spices and even cooking. Raj likes the product and decides to buy it for the shop. Jake tells Raj he has a special 'Mother's Day' offer on that day-a 10% discount (which he would give Raj personally as an incentive if he buys the COOKTEC). Raj is happy with the price and immediately agrees to buy it. Jake gives him the $900 incentive payment in cash. When the invoice arrives at the restaurant, Mike is very angry that Raj has bought such an expensive product without discussing the purchase with him and refuses to pay on the invoice.

At around the same time, Ashton has recently complained that the food he ordered from 'Curry in a Hurry' has caused him severe gastroenteritis, leaving him unable to work for several weeks. Tests have shown that the campylobacter bacteria was in the paneer (cheese) probably because it had not been stored at a proper temperature. It is true that on one occasion during a recent hot spell Mike forgot to put the paneer in the fridge. Ashton sues Mike, Raj and Janice for negligence, seeking damages to cover the medical expenses, lost wages and pain and suffering.

(a)Is there a partnership between Mike, Raj and Janice?

(b)Assuming for the purposes of (b) only that a partnership exists, who is liable to pay for the COOKTEC?

(c)Mike has no money or assets. Advise Ashton whether he can successfully sue either Raj and/or Janice.

(d)Is Raj entitled to retain the incentive payment?

Refer to relevant sections of the legislation and appropriate cases to support your arguments.