Christian Case

Issue –

Did Christian have authority under the partnership agreement to make purchases on behalf of the business?

If he doesn't under the written agreement with other partners does Fantastic thinks that he has actual and apparent authority to participate in management decisions (purchasing goods for the business as an ordinary course of the business) under the Partnership Act 1891 (QLD)?

Law –

Statue : Partnership Act 1891 (QLD)

s 5: Meaning of partnership

s 8: Power of partner to bind the firm

s 9: Partners bound by acts on behalf of firm

s 11: Effect of notice that firm will not be bound by acts of partner

s 12: Liability of partners

s 13: Liability of the firm for wrongs

s 14: Misapplication of money or property received for or in custody of the firm

s 15: Liability for wrongs joint and several

s 27: Rules as to interests and duties of partners subject to special agreement

Common Law:

Molinas v Smith [1932] –

Construction Engineering (Aust) Pty Ltd v Hexyl Pty Ltd (1985) - Actual and apparent authority

National Commercial Banking Corp of Australia Ltd v Batty (1986) – Liability for Wrongs

Walker v European Electronics Pty Ltd (1990) – Liability for Wrongs

Application:

Whether Christian breached the written partnership agreement