Question: Julie and Felise operate a hair salon named 'Colours and Curls' from a shop along Jalan Maharajalela. They offer hair styling, cutting, perming, colouring and straightening services. Both of them had contributed RM5000 each towards capital of the business. They also share profits equally.
Due to the latest ' Korean Wave' hair craze, Julie decided to invest and bought ten *Golden Titanium Curling Irons' from Syarikat TBM Sdn Bhd at the total cost of RM 20000. A deposit of RM2000 was paid and the balance of RM18000 is due and owing to Syarikat TBM Sdn Bhd.
Unfortunately, two(2) weeks after that, the covid pandemic struck and hair salons were not allowed to operate for an indefinite period of time. Syarikat TBM Sdn Bhd immediately demanded payment of the RM18000. Julie and Felise were not able to pay, and Syarikat TBM San Bhd took pity on them and said that it would accept RM10000 as full repayment.
Julie and Felise seek your advice as to the following:
(a) whether they are a partnership as defined in the Partnership Act 1961;
(b) assuming they are a partnership, whether Felise is also liable for the debt as she was not involved in the purchase of the curling irons at all. Julie feels that both of them should not be liable personally as partners have 'limited liability'; and
(c) whether they will still be liable to pay the balance of RM8000 later if they paid the RM10000 to Syarikat TBM Sdn Bhd as demanded.