Lim and King, who are young entrepreneurs, formed a partnership called S & D Enterprise, to sell high tech drones. Neither of them have any past experience in selling high tech devices and hence approached Sarah for help. Sarah agreed to provide her expertise to the firm provided she is given a 20% share of the profit made by the partnership. Under Sarah's stewardship the firm prospered. Lim and King left the firm under the sole management of Sarah. Unknown to Lim and King, Sarah borrowed RM100,000 from Ah Long Finance in the firm's name, purportedly to finance an expansion of the business. Ah Long Finance loaned the money to her, believing it to be for the firm, at an interest rate of 15% over current Bank Negara's rate. Sarah used the loan amount to purchase a multi-purpose vehicle which she uses mainly for her private purpose. The firm failed to make repayment of the loan. 

Discuss the liabilities of the parties to Ah Long Finance.

Answer rating: 100% (QA)

In this scenario there are multiple parties involved and their liabilities to Ah Long Finance can be analyzed as follows 1 Sarahs Liability Sarah bein... View the full answer