QUESTION 1 John, Paul, George and Ringo have been conducting their tax accounting business as a partnership over the last couple of years. The partnership trades under the name 'Fab Four Tax', and the partners are very proud of their clever logo incorporating this name. The logo is used on their letterhead, business cards, webpage etc. The partnership agreement stipulates that either John or Paul has authority to make contracts on behalf of the firm. The partnership has managed to build a solid database of clients and in order to protect their client base, the partners recently decided to include a clause in their partnership agreement in terms of which none of them would be permitted to practise as a tax accountant within a 15km radius of the Adelaide CBD for a two-year period, should any of them decide to resign from the partnership. George, feeling very happy about the partnership's success, decides to surprise the other partners and orders luxurious office furniture for everybody on behalf of the partnership from Elite Offices. George makes a point of using Elite Offices as they are a client of Fab Four Tax and George likes to 'support the people who support us'. He pops into their showrooms with his son, Ryan, one Saturday afternoon and orders the furniture at the same time as picking up a new study desk for Ryan. Unfortunately, the partnership subsequently experiences a number of setbacks, the first of which is Ringo's resignation. Soon after Ringo's resignation it also becomes apparent that the partnership's use of outdated tax planning software over the last two years caused the wrong advice to be provided to clients. Numerous clients made imprudent business decisions on the basis of this advice and suffered significant damage as a result. These clients are now investigating the possibility of holding the partnership liable. The office furniture that George ordered eventually arrives. George is very disappointed in John and Paul's reactions - instead of sharing his joy they are upset about the expense and tell George that he will have to pay for the furniture from his own pocket. John, Paul and George cannot agree as to who should pay for the furniture. In light of everything that has been happening, John, Paul and George decide to approach you for advice. The potential claim for damages by some of their clients is a cause for concern. John, Pau! and George are worried that their insurance will not be sufficient to cover these claims and want to know who will be liable if the partnership has insufficient assets to make up the shortfall. They also wish to resolve the issue as to who should be responsible for payment of the office furniture. John, Pay! and George do not want their relationship to disintegrate as a result of this disagreement and indicate that they will be satisfied to abide by your opinion in respect of who should bear the expense for the luxurious office furniture that George ordered. Your first step is to check whether the partnership have registered Fab Four Tax as a business name. They have not