Toy & Funny Farm is a firm that produces toys and gifts for children. There are seven partners in the firm. Consider the following situations and advise the firm:

a) The firm's managing partner, Shazwan borrowed RM 40,000 from his mother to settle

some of the firm's debts. When his mother demanded payment, the firm refused to pay on the ground that Shazwan was not authorised to borrow more than RM 10,000 without the consent of all the partners.

b) Without the firm's knowledge, another partner, Camelia, makes and sells stuffed toys

made from recycled items. She uses the firm's name to market the toys and deposits the earnings into her private account.

c) Another partner, Johar has recently passed away and left his shares in the partnership to his son, Fauzan. Fauzan claims that he is a partner in the firm and demands the right to participate in the management of the firm.

LAW:

1. ISSUE

2. LAW

- (a) section 7,9, 10 of liability partners for debt and obligation

- (b) section 32 duty to account for profits derived from a competing business

- (c) section 4(c)(iii) annuity to widow or children of a deceased partner

3. APPLICATION

- state details

- explain more

4. CONCLUSION