The partners of the firm, ABK & Co, are Ahmad, Baba and Khairul.

ABK & Co is in the

business of selling toys. Ahmad placed an order for toys from Mari-Main Sdn Bhd for the
sum of RM30,000. Mari-Main Sdn Bhd has delivered the toys to ABK & Co. Baba and
Khairul want to know whether they are liable to Mari-Main Sdn Bhd for the toys
supplied to ABK & Co.

According to Section 7, every partner is an agent to the firm and his other partners for
the purpose of the business. In this case, Ahmad acts as an agent of ABK & Co by
placing an order for toys from Mari-Main Sdn Bhd for the sum of RM30000 for the purpose
of the business. So, since Bala and Khairul are partners of ABK & Co, they are liable to
Mari-Main Sdn Bhd.
According to Section 11, every partners is liable jointly with the other partners for all
debts and obligations of the firm incurred while he is a partner. In this case, Ahmad
placed the order for the toys from Mari-Main Sdn Bhd for the sum of RM30000. Since
Baba and Khairul are partners of ABK&Co, they are liable jointly to Mari-Main Sdn Bhd for
the toys supplied to ABK&Co.

According to the section 7 of Partnership Act 1961 every partner is an agent of the firm
and his other partners for the purpose of the business. Ahmad is a agent for the Baba,
khairul and ABK& Co. Ahmad act himself as agent when placed an order for toys from
Main-Main Sdn Bhd so Baba and Khairul liable to Main-main Sdn Bhd. According to
section 11 of Partnership Act 1961, every partner liable jointly with the other partners for
all debts and obligations of the firm incurred while he is a partner. In this situation, Baba
and Khairul are liable to the order that Ahmad placed on Mari-Main Sdn Bhd for the sum
of RM30,000 because they are liable for the debt of the ABK& Co.
The partners of the firm, ABK & Co, are Ahmad, Baba and Khairul. ABK & Co is in the
business of selling toys. Ahmad placed an order for toys from Mari-Main Sdn Bhd for
the sum of RM30,000. Mari-Main Sdn Bhd has delivered the toys to ABK & Co.
However, as ABK & Co did not pay, Mari-Main Sdn Bhd sued Ahmad for payment.
Ahmad paid RM10,000 to Mari-Main Sdn Bhd. Advice Mari-Main Sdn Bhd whether it
can claim the balance of RM20,000 from Baba and Khairul.

According to section 7 Partnership Act 1961, Ahmad ordered the goods from Mari -Main
Sdn Bhd and he was doing so as an agent for the firm ABK & Co and his other partner,
Baba and Khariul for the purpose of the business which is selling toys. As a principal,
Baba and Khairul are liable. But, in section 11 of Partnership Act 1961, it stated that all
partner are jointly liable. Because of the joint liability, only 1 legal action can be taken to
recover the debt. Mari-Main Sdn Bhd already exhausted their right when they took legal
action against Ahmad and Ahmad already paid RM10,000 to them. Thus, Mari-Main
cannot take another legal action to Baba and Khairul to claim the balance of RM
20,000. Mari-main should take a legal action against all of the partners of ABK& Co at
the same time or to the firm as firm is a all partners collectively to ensure the can recover
all the debt.

According to section 7 of Partnership Act 1961, every partner of ABK & Co named
Ahmad, Baba, and Khairul is an agent of the firm and other partners for the purpose of
the business of selling toys, so Ahmad has acted as an agent to the ABK & Co and on
behalf of Baba and Khairul by purchasing toys amounted RM30,000.
According to section 11 of Partnership Act 1961, every partner including Ali, Baba, and
Khairul are liable jointly for all the obligation to pay the supplied toys from Mari-Main Sdn
Bhd. However, since joint liability can be only taken one legal action which Mari-Main
Sdn Bhd used on Ahmad for RM10,000. Therefore, Mari-Main Sdn Bhd has exhausted its
legal action to sue Baba and Khairul. Mari-Main Sdn Bhd cannot claim the remaining
balance from Baba and Khairul.

Mari -mari Sdn Bhd(MMSD) can not claim the balance of RM 200,000 from Baba and
Khairul.
According to Section 7 it is stated that every partner as an agent to the firm, Ahmad
can be classified as an agent to the ABK & Co because when he placed the order
which is toys from MMSD it is for their purpose of business. so, it indicate the other partner
will also liable for the action taken by the Ahmad. because Ahmad is act on behalf of
other partner or for ABK & Co.
however, according to Section 11, joint liability. it is stated that only one legal action that
can be taken. meaning that since MMSD already take an action to sue Ahmad. So
MMSD did not have any right to sue or claim the balance from the others partner which
is Baba and Khairul. MMSD should sued the firm at the first placed in order to get the full
amount which is RM 30,000.
Jack wants to start a business. He borrows RM10,000 from Kenny and promises to pay
Kenny 75% of the business’s profit until full settlement of the loan.
You are required to explain whether Jack and Kenny are in partnership.
(4 marks)
Jack and Kenny are not in partnership.
According to section 4(c), it is stated that the sharing of profit as repayment of debt is
not considered a partnership. It is clear that Jack is only paying Kenny the 75% of profits
until the debt settlement of RM10,000 that he has borrowed to start a business is fulfilled
and therefore, the relationship between them is more of a creditor and debtor as to
partners.
According to section 3, a partnership is an agreement between 2-20 persons who are
carrying out a common business which in this scenario is not the case as only Jack is
carrying out the business and Kenny is merely lending money as a creditor to Jack.

Jack and Kenny are not the partnership. As mentioned in Section 3 which is have
contractual between 2 - 20 persons carrying with on business in common with a view of
profit. in this case, there is contact between both of them and no common business
between them as Jack is the only one want to open the business. however stated in
Section 4 c sharing of profit in replacement of repayment for debt not consider a
partnership. it shows when Jack wants to borrow RM 10,000 to Kenny and promises to
pay Kenny 75% of the business' profit until full settlement. In conclusion, they are not
partnership.