You have been appointed as partnership secretary in the firm of Jones, James & Pitt, Chartered Accountants. The partnership articles appear in the 'Model form' partnership deed, above. The following problems emerge over a number of partners' meetings:

(a) John Jones soon became unhappy about his

future prospects. He retired from the firm last month and has taken a partnership with Snooks & Co, Chartered Accountants, whose office
is two doors away from the offices of Jones, James & Pitt. Jane James and William Pitt, the remaining partners, are anxious to stop John from competing with them.

(b)  Before he left, John Jones contracted to buy a microcomputer system for the practice from Scroggs Ltd, although at an earlier partners' meeting it was decided that the purchase should be deferred for one year. The system cost £5,000. Jane and William have so far refused to take delivery of the system or

pay for it.

(c)  Scroggs Ltd has written to the firm saying that

unless the debt is paid it will petition the court to wind up the firm.
Draft as part of your answer a letter to Scroggs Ltd to deal with whatever you think the legal position is under (b) and (c) above.

 

Answer rating: 100% (QA)

a Dear John Jones We have recently been made aware of your decision to retire from Jones James Pitt and join Snooks Co Chartered Accountants We unders... View the full answer