Question

Scully, Mulder and Doggit have been in partnership for purchasing cocoa beans from the supplier Skinner, and had entered a new two year contract running from September 2012 on behalf of the firm. In March 2013, Doggit quits the partnership to set up business on his own as a chocolate maker. Scully, Mulder and Doggit did not inform their clients and suppliers that Doggit had left the partnership. After Doggit left the partnership, Scully and Mulder’s business was not successful and they have not paid Skinner for the cocoa beans he has supplied for three months. Skinner has only now discovered that Doggit has left the partnership and intends to chase him for the monies owed.

Will Skinner be successful? Give reasons for your answer.

Answer 1

Yes Skinner can succeed

Reason:-

Provision relating to liability of outgoing partner to outsiders as per partnership Act.

Partners leaving the partnership, must give notice that they're leaving, otherwise they can become liable for debts incurred after they leave. The notices should include:

• actual notice to all those who have dealt with the partnership before the partner leaves; and
• an advertisement in The Gazette to tell anyone else who did business with the partnerpartnership

Reason behind this provision.

This is because the creditor can assume that the membership of the partnership continues unchanged until proper notice is given

Note:-A creditor might be unaware of the partner's leaving because the type of notice appropriate to them wasn't given. In this case, the creditor will be able to take action against the former partner for the firm's debts, even though they're no longer a partner.

Facts of case:-

In given case supplier Skinner was not been informed by any of partners relating to outgoing of Doggit. Therefore Mr/Mrs.Doggit is liability to pay to Skinner