Tutorial 8:

Partnership Law

Question 1 Buttercup, Blossoms and Bubbles formed an academy to train young girls in ballroom dancing. All of them contributed RM100,000 each and they agreed to share any profits or losses arising from this venture equally. They agree that Blossoms and Bubbles will be the dance instructors while Buttercup will control and manage the academy. Unknown to the other two girls, Blossoms invited several students from the academy to her house for personal training. She charges the students RM50 per hour for such training. Last two months, Bubbles was involved in a serious car accident and because of that accident, she becomes permanently paralysed from the waist down and has to rely on a wheelchair to move about.

a) Discuss whether Buttercup, Blossoms and Bubbles are partners or not under the definition of Partnership Act 1961.

b) Assuming that there exist a partnership among Buttercup, Blossoms and Bubbles, has Blossoms done anything wrong when she invited the students home for personal training? Why? Support your answer with cases and legal principles under partnership law.

c) Did Blossoms have the authority to conduct class in her home?

d) Bubbles, Blossom and Buttercup were being sued by driver of the other car in the accident for damage to the car. Blossom and Buttercup refuse to pay saying it was Bubbles's fault and not theirs.

e) Finally, after much arguing, they decide that they do not want to go on with this business. They seek your advice.