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The Louis Wentworth Partnership (LWP) currently has three partners, Veda, Franck and Louise, who together run a landscaping and garden-maintenance business. They have clients across

The Louis Wentworth Partnership (LWP) currently has three partners, Veda, Franck and Louise, who together run a landscaping and garden-maintenance business. They have clients across all the parishes in Jamaica, who range from owners of stately homes to individuals with small townhouse gardens. The partnership was set up 12 years ago.

There is a partnership agreement that includes the following provisions:

  • profits and losses are shared equally;
  • the partnership will continue after the departure of any partner;
  • all partners must consent to the incurring of any debt over 500,000 Jamaica dollars on behalf of the partnership.

Despite the recent pandemic, the partnership's business has been thriving and the partners are now looking to take on another partner. They have been in discussions with Peter Thompson, an experienced and quite well-known landscaper from Kingston. He has indicated that he would be happy to join the partnership in early April 2022. The partners are, however, keen to put Peter's name on their website and other marketing material as soon as possible, to enhance the partnership's reputation.

Peter has, until now, run his own business as a sole trader and is uncertain of the implications of joining a partnership.

In the last week, an invoice for 700,000 Jamaican dollars, addressed to the partnership, was received at the partnership's main office for a high-quality ride-on mower. Veda and Louise discovered that the order for the mower had been made by Franck. The supplier was Desperado Mowers Ltd, a new company with whom LWP has had no previous dealings.

(a) Advise who will be liable to pay for the mower

(b) Explain to Peter:

(i) whether he could incur liability for any debts of the partnership either before he joins, or after he leaves, the partnership;

(ii) the protections that he could seek from such potential liabilities.

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