Advise Jack and Lenny on their

duties and liabilities under the law

of partnership.
Issue 1
Whether Kenny action or omission binds with Jack and Lenny if it is carried out
within the ordinary scope of the firm business?
Section 7, 8 & 11:
1) Every partner is an agent of the firm for the purpose of the business
2) Acts of partner does any act in the usual way of business will bind the firm and
partner
3) Unless the partner has no authority for the firm in particular matter & the
person who deals with him knows that he has no authority or does not believe
him to be a partner
Case:
1) Chan King Yue v Lee & Wong
2) Datuk M Kayveas & Anor v Bar Council
3) Restaurant Rizqin v Asia Commercial Finance (M) Bhd
Conclusion:
Jack and Lenny are liable on Kennys act as long as it is related to the business
activities. In Restaurant Rizqin v Asia Commercial Finance (M) Bhd case, the
court held inter alia that a partner was bound to the hire purchase agreement
even she is not a signatory to the agreement.

Issue 2
Whether Jack and Lenny can avoid liability on Kenny decision on buying 100
pieces of batik from Mat Soh?

Section 9, 15:
1) One of the partner pledges the credit of the firm for a purpose not connected
with the firm ordinary courses of business.
2) If a partner that is acting in his individual capacity improperly make use of
trust property in the business of the firm, then the other partners are not liable to
the beneficiaries.
Case:
1) Bank of Australiasia v Breillat
Conclusion:
Since Jack and Lenny are never agreed to buy the 100 pieces of batik from Mat
Soh, and more importantly, it is not connected with their business nature.
Therefore, they could avoid the liability under Section 9 as Kennys purchase is
not for the purpose of the business and more towards personal interest.

Issue 3
Whether Mat Soh can be appointed as a partner without the consent of Jack and
Lenny?
Section 26 (g):
1) No partner may be introduced as a partner without the consent of all existing
partners
Case:
1) Conclusion:
Since Kenny only introduced Mat Soh to Jack and Lenny 2 weeks after the
appointment as the new partner without their consent and they never agreed on
this, the introduction of Mat Soh as the new partner is not valid.

Issue 4
Whether Jack and Lenny have the right to ask Kenny to surrender the business
account?
Section 30:
1) Partners are bound to render true account and full information of all things
affecting the partnership to any partner.
Case:
1) Law & Law
2) Maddeford v Austwick
Conclusion:
Jack and Lenny have the rights to Kenny to render the true account for JKL. In
fact, Kenny must surrender the account to the partners as soon as possible and
shall not to keep it in his house.

Issue 5
Whether Jack and Lenny have the right to take legal action on Kennys new
Sweet Bridal Studio?
Section 32:
1) Partner without the consent of other partners that carries on business of the
same nature and act as competitor must account for and pay over to the firm all
profit made by him in that business.
Case:
1) Green v Howell
Conclusion:
Since Kenny new bridal studio becomes the direct competitor of JKL, Jack and
Lenny can take legal action against Kenny using Section 32.