Question
While Ashley is on holiday, Mary offers ScarletWedz as the venue for her friend Elizabeth's wedding, at the discount price of $5,000 (usually $10,000). Additionally,
While Ashley is on holiday, Mary offers ScarletWedz as the venue for her friend Elizabeth's wedding, at the discount price of $5,000 (usually $10,000). Additionally, Mary engages with LimoRUS to hire two limousines for Elizabeth's wedding at a discounted price of $3,000 (the lease would have normally cost $6,000). The discount is a result of Mary promising the manager that as the co-partner of ScarletWedz, LimoRUS will be the exclusive supplier of limousines for the firm. The manager, however, is aware that Mary does not have the authority to hire the limousines without Ashley's permission but decides to charge the partnership since he knows Mary cannot afford the expense herself.
Ashley later discovers an invoice of $3,000 from LimoRUS. She demands that Mary pay for the cost as she did not approve it.
b)Advise whether Mary had the authority to hire the two limousines and whether the partnership would be liable to pay for the limousines under the Partnership Act 1958 (Vic).
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