Question 4 (15 marks)

Ada and Betty were partners in AB Production Co. Their main partnership business was to design and film TV advertisement. Ada and Betty had been working together for five years and they maintained an excellent working relationship. Recently, Bettys younger brother, Ricky, had returned to Hong Kong to set up his own firm. The firm also operated TV advertisement business as AB Production Co. did. In order to help his brother, Betty introduced some clients of AB Production Co. to him. She also highly recommended Rickys favourable terms to the clients and this caused AB Production Co. to lose 20% of their jobs and revenue. Furthermore, Betty had injected capital into Rickys firm and became a partner of Ricky. Betty never mentioned anything about her brother Ricky to Ada.

Required:

Explain whether Betty breached any duty(ies) as a partner of AB Production Co. and discuss the consequences, if any. (15 marks)