Reference no: EM133229833

Mary and Ashley are partners who operate a wedding venue in Melbourne called ScarletWedz. The written terms of their partnership agreement provide:  

1. Mary and Ashley are to share profits equally.  
2. Any purchase of goods or services greater than $1,000 must be approved by both Mary and Ashley.  

In the first year of operations, ScarletWedz does reasonably well. Mary who manages the financial accounts pays herself an extra 10% from the profits and salary of $20,000 without informing Ashley. When Ashley finds out Mary paid herself the extra profits and salary, she becomes furious and claims she is not entitled to the additional payments. Mary however claims she should be rewarded for working harder in the business than Ashley.  

a) Advise Mary whether she is entitled to the extra profits and salary under their agreement and the Partnership Act 1958 (Vic.)