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Heath, Ruby, and Anton decide to start a business called 'Formal Catwear' (FC) which will specialise in the manufacture of tuxedos, bowties, and various other formalwear designed specifically for cats. There is no written agreement, however, the 3 entrepreneurs discuss the way the business should run at length. They agree that the business should be their priority and all three parties should make a full-time commitment to the business. Heath and Ruby inject $20,000 each in start-up capital and deposit the funds in the newly created Formal Catwear Joint Venture Bank Account. Anton provides some second-hand sewing machines, shears, and other equipment that he inherited from his grandmother who was a gifted seamstress. The first year of business is tough, as they must endure a lengthy process of setting up commercial premises to manufacture the clothes, design, create protypes, etc. Despite recording no sales, their start up capital is spent in the first year with the business posting a net loss of $45,000. Dissatisfied with the slow progress, Anton stops turning up to work without warning. Despite many attempts by Heath and Ruby, Anton is uncontactable and refuses to return any phone calls or emails. The pair hold out hope that he will return when the business starts selling its products.

Heath and Ruby inject further capital into the business upon receiving its first major customer, Purrty Cat Supplies. With Anton missing in action, Heath oversees the manufacturing process whilst Ruby focuses on the accounting side of the business and customer service. Whilst selling clothes at his own stall at a trade show, Heath accidently sells several protypes that were not for sale as they were deemed unsafe. One particular product line was scrapped altogether as the sequins would frequently cause deep cuts to the cats wearing them. Several owners are now threatening legal action due to severe injuries to their cats and the legal costs themselves are likely to mean Formal Catwear will not be able to pay its normal commercial expenses in the future. In further bad news, Heath found out that Ruby had set up a business with the CEO of Puurty Cat Supplies, Dean Puurty, called Planet Canine. Planet Canine sells activewear for dogs and has become successful rather quickly because of the ability to sell to Puurty Cat Supplies. Heath was hoping to move into the lucrative dog clothing market and FC could have retooled their equipment easily to produce clothes for dogs.

Heath has come to you for advice on any liability he has in relation to his Formal Catwear business and the liability of Ruby and Anton. Please restrict your answer to discussion of the Partnerships Act 1891 (Qld) and relevant Common Law.