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Law60104 Business Law|Knowledge Assessment Answer

Spencer, Emily and Aria entered into a business arrangement to run a large business selling organic skin care products. They decided to name their business as Pretty Face Organics. Spencer and Emily left their employment to work full time in the new business. Aria retained his job but agreed to help lent RM100,000 to the new business venture. It was agreed that Spencer and Emily would each be paid a salary of RM6,500 a month and Aria would be paid 4% interest on her loan. The business arrangement was done in writing. It also stated that each of them had invested RM40,000 as capital and that after salaries and interest were paid they would share equally in any profits. A few months later, Emily who has borrowed some money in the name of partnership and had absconded without anyone’s knowledge. Describe if the arrangement between Spencer, Aria and Emily fulfil the requirements of a partnership and advise the remaining partners as to their liability arising out of Emily’s conduc



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