Patrick has started a sole trader business, Fire & Smoke. Patrick holds a NSW State permit to sell fireworks. As there are only a limited number of permits, the business has been going very well. It operates online only. Patrick, as a licensed electrician, also runs a sole trader business, Bright Spark. He is whining one night over drinks in his local pub to his friends about how busy he is. Neville, one of his friends, suggests that his wife could 'manage' the fireworks business for him, as her dress shop is struggling financially and she was thinking of closing. Patrick, Neville and his wife, Trudy, meet up again the next night, to discuss how this could work and agree on the following, in writing:

As of today (10^th February):

Trudy will contribute her shop as the premises for Fire & Smoke from which to operate, and a place to store the stock.

Trudy will manage all customer requests and will ensure that compliance with the government permit is maintained.

Trudy will be entitled to the reimbursement of any costs but will not be entitled to a wage for her time spent working for the business of Fire & Smoke.

Patrick and Trudy will split the profits at the end of each quarter 60% to Patrick and 40% to Trudy.

Trudy asks if there can be an acknowledgment in writing that she is not to be considered a partner of the business. Patrick agrees to this.

After making this agreement the following happens:

On 12^th February Patrick ordered $10,000.00 of mixed fireworks from the manufacturer, Potos, to be delivered to Trudy's shop. This was bought on credit, payable in 10 days from delivery. The fireworks are delivered the next day.

On 14^th February the NSW government announces that it has issued 5 more permits for the sale of fireworks and as a direct result, Fire & Smoke experiences a significant drop in orders during the rest of February.

On 28^th February, Fire & Smoke still doesn't have the funds to pay the $10,000.00 owing to Potos.

Discuss Trudy's potential liability for the $10,000.00 owing. Support your response with relevant primary authorities.