The Partnership Act 1890 and The Company law Assignment

The Partnership Act 1890 and The Company law - Assignment Example Price4. Another option is that where the court is of the opinion that there exists a just and equitable ground to dissolve the partnership pursuant to section 35(f) (Harrison v. Tennant)56 Thus the options that are available to Janine and Mary would be that of judicial dissolution or if there had been an express pre-condition within the partnership agreement that time should be given to the running of the business, this could be an effective reason which can be used under the provisions of an express and flagrant breach of the partnership agreement, whereby Lindsay can be expelled from the partnership. In respect of judicial dissolution it is important to mention he repercussion that flow from such an action as the goodwill would be sold and in addition there would be the requirement of return of capital of each of the partner and therefore Lindsay would have to be returned her share of the capital and an appropriate order in respect of the same would be made by the court so as to di rect the recovery of the same. Another reason which can be used as a basis to expel Lindsay is the fact that she has been involved in criminal conduct and therefore the partnership would be affected by her actions and therefore she has already failed to perform her duties effectively she could be expelled, however, there remains the possibility of such an act of expulsion being challenged by Lindsay in court and arguing the fact that her actions in no way affected the partnership and her reason for not giving proper time to the partnership were merely on the basis of the fact that she was not in the right phase of mind and her acts/omissions if she... This discussion talks that the only problem which lies in respect of this would be that the provision provides for the term ‘may’ which does not make it compulsory and therefore if Mary hires Terry without consultation that would be problematic. The problem in respect of this position would be that under section 5 of the Partnership Act 1890 a partner is considered to be an agent of the firm as well as other partners in respect of the purpose of the business of the partnership and so the acts of the partner who indulges into action in order to carry out the usual business of the kind which is carried on by the firm for which he is a member, would bind the firm, unless the partner does not have authority to do the act.Further, section 6 provides that if an act or instrument which relates to the business of the firm and is done/executed in the name of the firm with a person who is authorized even if he is a partner or not will bind the firm as well as the partners. By virt ue of the aforementioned section 5 and 6, it is clear that if Mary enters into a contract for hiring Terry whereby Terry does know that he is the partner and has the authority would create a binding contract which would be effective on both Lindsay and Janine. In addition by virtue of the instrument, if any, section 6 would come into play and would be binding upon Terry, the firm as well as the partners of the firm and thus such a contract would then have to be abided by and thus an action in respect of the same cannot be rectified.