Reference no: EM133458725

Question

Jamie and Greg have a business called Copies R Us, that leases photocopiers to commercial clients. Greg is responsible for accounting and finance functions while Jamie is responsible for purchases and customer service. The agreement that they both signed when they started the business states that they will only buy toner for the photocopiers from a business called Toners are Great, which is a business, which specialises in high quality toner. Jamie provides toner to all Copies R Us clients at the start of each month. In order to save costs, Jamie decides to buy the toner from a private supplier and does not inform Greg or Toners are Great. At the start of February he provides the toner to clients. The toner is of poor quality and an important client, Concord Logistics, sues Copies R Us for damages, arguing that its business has suffered greatly from the poor quality of the product provided by Copies R Us. Greg argues that he is not jointly liable since James acted contrary to their agreement.

Discuss whether all the partners are jointly liable for the claim made against the partnership by Concord for damages caused by Jamie's actions. Use cases and statutory provisions of the Partnerships Act 1958 (Vic) to support your answer.