HA3021 Tutorial Questions On Corporations Law - Tutoring 1

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Week 2 Question (10 marks)

Teresa and Alison operate a partnership making and selling jam. A reduced supply of fruit has resulted in a fall in sales. Alison purchased a large supply of glass jars that must be paid for within 30 days. The funds are not available to meet this expense. Teresa was not consulted when Alison bought the jars and insists that Alison pay for them out of her personal savings.

What do you think will be the legal consequences here resulting from Teresa’s decision not to consult Alison? (10 marks)

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