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Week 13 (Pri nciples of Part nership - actual/appare nt authority, act ing
with in the scope -duty not to compete)
QUESTION 1
Chloe is a lawyer located in Brisba ne and Kate is an acco untant on the Gold
Coast. Chloe is in a part nership with Mega n operati ng a law firm ( “ the Brisba ne
partnership ” ). Without Megan s consent or knowledge, Chloe and Kate enter
an agreeme nt in which Kate will pay Chloe a fee for each clie nt referred to
Kate by Chloe. Chloe subseque ntly receives a nu mber of payme nts from Kate and deposits them into her pers onal bank acco unt.
Noting the success of Kate s accounting practice, Chloe agrees with Kate to form a part nership on the Gold Coast provid ing acco unting and legal services (“the Gold Coast partnership ” ). Initially, it isdathafeChloe will provide the
legal services “ after hours ” until Chloe has a sufficient client base so that she can retire from the Brisba ne part nership and move perma nen tly to the Gold Coast. As an in itial capital con tributio n to the Gold Coast part nership, Chloe comb ines her referral fees with $10,000 she withdrew from the Brisba ne
part nership trust acco unt. The $10,000 represe nted compe nsatio n that was to be paid to one of Chloe s personal injury clients. Megan finds out about the Gold Coast part nership one week after it comme nces bus in ess.
Advise Mega n as to all releva nt matters un der the Part nership Act 1891 (Qld).
Issue 1: Is there has the part nership betwee n Mega n, Chloe and Kate?
Law:
Section 5 Partnership Act ( “ PA ): Two or morecpersvho:
carry on a bus in ess (Smith v An ders on (1880))
in common (Ka ng-Kem v Pai ne (2004))
have a view of profit (Un ited Domi nio ns Corp Ltd. V Brian Pty Ltd (1995))
Section 6 PA: Adds to the basic definition of partnership three specific rules as to whether a part nership exists:
s6 (1)(a) - co-ow nership of property,
s6 (1)(b) - reve nue shari ng, and
s6 (1)(c) - profit and loss shari ng.
Application: From the information give
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