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Issue

Whether the firm could be held liable for


negligence because of the accident involved
by Joe and Jake.
Law
Section 12 of Partnership Act 1961
Where, by any wrongly act or omission of any
partner acting in the ordinary course of the
business of the firm or with the authority of his
co-partners, loss or injury is caused to any person
not being a partner in the firm, or any penalty is
incurred, the firm is liable therefor to the same
extent as the partner so acting or omitting to act.
Liability is seen in two instances; (1) when the
tort is done in the ordinary course of the
business of the firm and (2) when the tort is
done with the consent of the other partners.
Example of the first instance; Hamlyn v
Houston & Co.
If the tort is committed without the actual
authority of the partners and outside the
scope of the partners usual authority, the
firm and the other partners would not be
liable. Mara v Browne
Application
Joe and Jake were involved in an accident, and
the firm has been sued for negligence.
The firm could not be held liable if the tort is
committed without the actual authority of the
partners and outside the scope of the partners
usual authority.
Unless the accident occurred during the ordinary
course of the business of the firm, or with actual
authority of the partners, the firm will not be
liable for the negligence committed by Joe and
Jake.

Conclusion
The firm will not be liable for the wrongful act
committed by Joe and Jake.

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