Gita and Luis are partners in a catering business called Meals4U. They regularly order fresh fish from Bespoke Foods Ltd. To cut costs, Gita asks Luis not to order any more fish from Bespoke but instead to buy it at the local supermarket. The next day Luis gets a new customer and, wanting to make a good impression, she again orders fish from Bespoke, who know nothing of Gita’s request. Two months later, Bespoke’s bill has not been paid and Bespoke is threatening to sue Gita and Luis as the partners of Meals4U. Gita blames Luis for the situation.
a) Advise Gita whether she will be liable to pay the debt from her personal resources if Meals4U has insufficient assets to pay it.
b) If Meals4U was a limited company rather than a partnership, explain, giving reasons, who would be liable for the debt to Bespoke.