Question
Peter, Paul and Mary are students who are keen to earn an income in their spare time to finance their studies. Peter has a truck,
Peter, Paul and Mary are students who are keen to earn an income in their spare time to finance their studies. Peter has a truck, Paul owns a lawnmower and Mary has a computer. They print flyers advertising PPM Mowing Service, their registered business name, which they drop in neighbourhood letterboxes. Within a short time they have a list of regular clients. Peter cuts the grass, Mary removes the clippings in her truck and Paul keeps the accounts. Peter decides that they need an industrial ride-on mower and orders one from FastCut Mowers in the name of PPM Mowing Service. Paul and Mary were not consulted about this purchase. Meanwhile Mary develops a separate business relationship with many of PPM's clients by removing rubbish from their properties on weekends while Peter and Paul are busy studying. These clients pay Mary in cash which she deposits in her personal bank account. Mary does not disclose these jobs to Peter and Paul. When FastCut's bill arrives, Paul is particularly upset when he realises there is insufficient money in the accounts to pay for the ride-on mower.
1. Are Peter, Paul and Mary carrying on a partnership?
2. Assuming that Peter, Paul and Mary are in partnership would Paul and Mary be liable to contribute to the purchase of the ride-on mower?
3. Is Mary in breach of any partnership duties as a result of carrying out her weekend work?
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