Question
Remy, Julia's husband obtained from her a sum of RM35,000 as a loan for the firm of which he was a partner. Remy gave Julia
Remy, Julia's husband obtained from her a sum of RM35,000 as a loan for the firm of which he was a partner. Remy gave Julia a receipt in the name of the partnership firm R&Partners. The money was paid into the partnership account and immediately thereafter, utilised by the firm to pay off some of its debts. In an action by Julia to recover the loan, the other party of the firm Rahman contended that Remy had no authority given by the firm to borrow the money. However, if it was made, it was a payment by a wife to her husband personally for his use and benefit. Razak, a sleeping partner of R&Partners recently convicted of money laundering. Due to the various problems in R&Partners, Rahman feels that R&Partners cannot go further year. Rahman seeks your advice to solve his partnership problems. Advise the following:
1) Explain the application of laws available for this case.
2) Give your finding and advice to Rahman.
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