Question
Mr. Coconut and Mr. Papaya are best friends. Both of them involved in business of supplying glass materials. In order to protect themselves, they entered
Mr. Coconut and Mr. Papaya are best friends. Both of them involved in business of supplying glass materials. In order to protect themselves, they entered into an agreement to share profit and loss in their business. The word used in the agreement was 'group' as both of them are responsible to one another and act as an agent for their business. After five years together under the business name known as Brotherhood Glass Group, Mr. Coconut decided to sell glass materials all by himself and solely gain profit by his own. Mr. Papaya disagreed as he claimed that their agreement is considered as a partnership agreement. Thus, both of them are bound to the agreement as a partner. On the other hand, Mr. Melon who worked as a lorry driver claimed that he is a part of the business and should be considered as a partner. Mr. Melon in the opinion that his salary amounted of RM1,000 per month is not enough, thus he should be entitled to obtain profit gain by Brotherhood Glass Group. Advise Mr. Coconut, Mr. Papaya and Mr. Melon as to their status in Brotherhood Glass Group. In the course of your answer, advise the party the correct method to dissolve the partnership agreement (if any). Support your answer with the provisions in Partnership Act 1961 and decided cases (if any)
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