Question
Vance and Cadel are good friends and enthusiastic cyclists. Vance has won several major events and is well-known in the cycling community. Now in their
Vance and Cadel are good friends and enthusiastic cyclists. Vance has won several major events and is well-known in the cycling community. Now in their sixties, they decide to start a small business selling bicycles and establish a partnership for this purpose. It is agreed thatCadel will play a more active role in the day-today running of the shop whilst Vance will do promotions and continue racing on the veterans' circuit, wearing the partnership's colours. It is also agreed thatCadel may purchase stock for the business, up to the value of $5,000 per month.Several months after the partnership was established, Cadel purchases six high performance Italian racing bikes from Avanti's agent in Melbourne.Each racing bike cost $15,000. When the invoice arrives, Vance is angry and refuses to agree to pay. These were clearly the most expensive bikes that Cadel had ever ordered. Avanti threatens legal action against the partnership. Advise Vance whether he can be held liable for the purchase under the Partnership Act
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