Leyton and Dustin run a service station in a country town, the service station sells petrol and
Fantastic news! We've Found the answer you've been seeking!
Question:
Leyton has been approached by a supplier of magazines who offers the business the delivery of 100 copies of a particular publication each month. Leyton convinced that the magazine is popular and will make some money, signs a contract with a promise to pay $5,000 in installments for the delivery of the magazines.
The magazines arrive and Dustin is very upset, first because the magazine is quite unsuitable for display in the business and may result in a loss of customers if they see this publication, but he is also upset that Leyton has made an agreement without consulting him. There is an argument between the partners and Leyton takes sick leave and stays at home to recover from the stress of the argument. In the meantime, Dustin communicates with the supplier of the magazines and declares that the agreement to supply the publication is invalid due to a breach of the partnership agreement and that the magazines will be returned and no payments will be forthcoming from the business.
Explain, with reference to partnership law:
a. Whether Dustin can cancel the contract with the supplier of the magazines?
b. Whether Dustin can be liable for the actions of Leyton?
Related Book For
Statistics for Business Decision Making and Analysis
ISBN: 978-0321890269
2nd edition
Authors: Robert Stine, Dean Foster
Posted Date: