Question: Arwin and Jonathan formed a partnership to run a computer retail business called AJComputer. On 25 March 2023, after being in business for ten years,
Arwin and Jonathan formed a partnership to run a computer retail business called AJComputer. On 25 March 2023, after being in business for ten years, Arwin and Jonathandecided to dissolve the partnership by agreement upon Jonathan's decision to retire. Noannouncement of the dissolution was made in the Federal Gazette or in any other way.Arwin carried on the business under the name of AJ Computer. New order forms andinvoiceswerepreparedshowingArwinasthesoleproprietorofthebusiness.FivemonthsafterJonathan leftthe firm,a new staffofArwin ordered computer parts from twocompaniessupplyingelectronicparts,viz,ComputecSdnBhd,(whohadonmanyprevious occasions supplied parts to the old firm) and JJ Electronics Sdn Bhd (who hadnotsuppliedgoodstotheoldfirm) usingoldorderformsshowingthenames ofArwinandJonathanaspartners.Thepartsweresuppliedbutbeforepaymentcouldbemade,Arwin,havingsufferedheavylossesinthebusiness,becameinsolvent.Bothcompaniesobtained judgement against AJ Computer. The assets of the business were not sufficient to pay thejudgmentsumandtheynowintendtoenforcethejudgmentagainstJonathanasapartnerinAJComputer.
It has also come to Jonathan's notice that eight months before the dissolution of thepartnership,Arwin,whilstdeliveringcomputerstoacustomerdrovethefirm'svannegligently and caused a collision with a pedestrian, Dorothy.Dorothy sued Arwin in hispersonal capacity for negligence and obtained damages in the amount of RM50,000.Jonathanwasneverinformedoftheaccidentnorthesuit.Dorothy,havingdiscoveredthatJonathanwasapartnerofArwinhasnowthreatenedtosueJonathan,havingbeenunabletoenforcethejudgmentagainstArwin.
AdviseJonathanontheabove matters.
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