- 10 Marks
Question
‘X’, ‘Y’, and ‘Z’ formed a partnership in 2007 and contributed N400,000, N300,000, and N200,000, respectively. In the course of managing the firm, Y paid the electricity bills of the firm to keep the business of the partnership going, and wants to be reimbursed. X intends to introduce a friend to join the partnership.
Required:
What are the positions of the law in the situations above? (10 Marks)
Answer
- Y, having paid for expenses incurred in the ordinary course of running the business (i.e., electricity bills), is entitled to be reimbursed by the firm under the principle of indemnity.
- X cannot introduce a new partner without the unanimous consent of all existing partners, as per partnership law principles.
- Tags: Contributions, Law of Partnership, Partnership
- Level: Level 1
- Topic: Partnership Law
- Series: MAY 2015
- Uploader: Joseph