Partnership Law Past Paper PDF

Test Unit 1 Consolidate - Test Your Knowledge 5 OF 5 QUESTIONS REMAINING Test Content Question 1 1 Point Liam and Daniel have been partners since 1990 in a garage t...

Test Unit 1 Consolidate - Test Your Knowledge 5 OF 5 QUESTIONS REMAINING Test Content Question 1 1 Point Liam and Daniel have been partners since 1990 in a garage trading as L & D Vehicle Repairs. They have no partnership agreement. They have always purchased their stock from Car Parts (Garages) Co. Liam has just learnt that Daniel has been a sleeping partner in Car Parts (Garages) Co for the last year. When challenged, Daniel replied that Car Parts (Garages) Co wrote to L & D Vehicle Repairs suggesting a merger of the 2 businesses but, as Liam always said it was good to keep their business small, Daniel thought that Liam would not agree to the merger; instead, he negotiated his personal involvement with Car Parts (Garages) Co. Which one of the following is CORRECT? Liam is entitled to claim from Daniel an account for his share of the profits of Car A Parts (Garages) Co on the basis that Daniel is involved in a competing business without Liam's knowledge and consent Liam is entitled to expel Daniel from the partnership and to force Daniel to sell to B him his share of the business On the basis that the opportunity to invest in Car Parts (Garages) Co was initially offered to L & D Vehicle Repairs, Liam may succeed in claiming that Daniel should C now account to Liam for any profit he has received from his involvement with the firm. If Daniel now retires as a partner in L&D Vehicle Repairs, Liam will nevertheless D continue as a partner in the firm. Question 2 1 Point https://elite.law.ac.uk/ultra/courses/_69895894_1/outline/as 18_1/overview/attempt/_18418716_1?courseId=_69895894_1 17/11/2024, 14 46 Page 1 of 4 : s  Nicola has helped her daughters Antonia and Chelsea establish a beauty therapist business by providing the necessary finance and by visiting the salon regularly to provide business advice. Antonia and Chelsea had a formal partnership agreement drawn up between them. Nicola does not want to be a partner in the firm as she runs her own driving school business. However, as Nicola is often seen at the salon, Antonia has occasionally told product suppliers that Nicola is a partner in the firm. Nicola wants to know if she could be liable for a debt of the firm to a supplier to whom Antonia had represented that Nicola was a partner. Which one of the following is INCORRECT? Nicola could possibly be liable, if Nicola knew of and allowed the representations A made by Antonia Nicola could possibly be liable, if the contract with the supplier was made after the B representation C Nicola could possibly be liable, if the supplier thought Nicola was a partner D Nicola could not be liable in any circumstances Question 3 1 Point Oliver, Henry and Michelle are in partnership supplying office furniture. On 26 February the firm enters into a contract to supply desks to a customer. On 4 March Henry retires from the partnership and the other two agree to indemnify him against any liability on the contract. On 25 March the partnership defaults on the contract. On 28 March Isobel joins the firm as a partner. Who is liable for breach of contract? Which one of the following is CORRECT? A Only Oliver, Michelle and Isobel are liable for the breach of contract B Oliver, Henry, Michelle and Isobel are liable for the breach of contract https://elite.law.ac.uk/ultra/courses/_69895894_1/outline/as 18_1/overview/attempt/_18418716_1?courseId=_69895894_1 17/11/2024, 14 46 Page 2 of 4 : s  C Only Oliver and Michelle are liable for the breach of contract D Only Oliver, Henry and Michelle are liable for the breach of contract Question 4 1 Point Helen, Judy and Len run a bakery as a partnership. They have no written agreement and the only relevant term they have agreed orally is that they share profits in the ratio 1 (Helen) : 1 (Judy) : 2 (Len). Which one or more of the following is INCORRECT? Profits of £9,000 from the sale of a recipe book which the bakery has been selling will A be split £1,500 to Helen, £1,500 to Judy and £6,000 to Len. Any partner can dissolve the partnership immediately but only if they give notice in B writing. C Each partner is liable without limit for the debts of the firm. D Len can retire from the partnership if Helen and Judy agree. Question 5 1 Point Therese, Tim and Scarlet were partners until Therese left the business amicably, leaving Tim and Scarlet to carry on in partnership. There was no partnership agreement and the three partners shared profits equally. After Therese left the firm, the remaining partners ordered goods from Bramhope Limited but the invoice for those goods has not yet been paid. Bramhope had dealt with the firm on several occasions before Therese left the firm. Which one of the following is CORRECT? A Therese cannot be liable because the debt was incurred after she left the firm. Therese is not liable for the debt if at the time of her leaving she gave notice in the B London Gazette. https://elite.law.ac.uk/ultra/courses/_69895894_1/outline/as 18_1/overview/attempt/_18418716_1?courseId=_69895894_1 17/11/2024, 14 46 Page 3 of 4 : s  C Bramhope Limited can sue Therese for a maximum of 1/3 of the sum outstanding. Assume that at the time of her leaving Therese gave notice in the London Gazette. She later wrote to Bramhope Limited to give notice that she had left but the D company did not receive her letter until after the debt was incurred. Therese could become liable for the full debt. Additional content Drag and drop files here or click to add text. Questions Filter (5) Save and Close Submit https://elite.law.ac.uk/ultra/courses/_69895894_1/outline/as 18_1/overview/attempt/_18418716_1?courseId=_69895894_1 17/11/2024, 14 46 Page 4 of 4 : s