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Lotti, Pearl and Candy set up an accounting practice and decide on a formal written agreement which contains the following: "This business does not give rise to a partnership between the parties and nothing said or done by the parties to this agreement will result in a partnership between them." Lotti provides specialist investment advice while Pearl and Candy do regular accounting work for the clients. They all contribute to the business expenses and divide the profits between them. A new client, Mika, seeks investment advice and is seen by Lotti. The advice Mika receives from Lotti is to invest in Chang Ltd. Lotti's brother Malo is managing director of Chang Ltd. Unfortunately for Mika, Chang Ltd has very few assets and goes into liquidation. Mika phones Lotti to complain but she has left for Singapore permanently.
Mika wants to sue the accounting practice but Pearl and Candy deny any knowledge of Lotti's intentions and deny they are liable.
Team A represents Mika.
Team B represent Pearl and Candy.
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