Richard was one of the partners of the partnership firm Smith & Partners, who specialised in making handcrafted gold and silver cufflinks, and tie pins. Richard retired from the partnership, while the remaining partners carried on the business under the same goodwill. Richard then moved to the south of France to spend his retirement in peace and quiet. Three years later, Richard has been sued by Glitter & Co for a sum of 70,000 for supplies made to Smith & Partners after Richard ceased to be a partner of the firm. Upon investigation it transpires that Smith & Partners continued using the stationary (letter head, etc.) that still bore Richards name even after his departure.

Glitter & Co take the position that Richard is liable along with the other partners. On the other hand, the remaining partners of Smith & Partners now argue that Richard will still need to foot his share of the bill as some of the debts arose prior to his retirement.

A very worried Richard seeks your advice concerning his liability.