In consequence of your breaches of our partnership


1. Tom, Dick and Harry are partners in an unlimited partnership called We Restore. In the course of the partnership business, Harry undertook to restore a valuable painting for a customer. Harry carried out the work negligently and the painting is irreparably damaged. The customer proposes to sue both for tort and for breach of contract.

Explain the potential liability of We Restore, and Tom, Dick and Harry on the basis that :

(a) the firm is an unlimited partnership; and

(b) the firm is an LLP.

2. Arnold, Bill and Cuthbert have carried on business as an unlimited partnership for several years. They have had many disagreements largely because, according to Arnold and Bill, Cuthbert has totally dis- regarded the terms of the partnership agreement. They have now written to Cuthbert in the following terms:

In consequence of your breaches of our partnership agreement we Arnold and Bill propose to exclude you Cuthbert from the  partnership.

What is the legal effect of this  notice?

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Accounting Basics: In consequence of your breaches of our partnership
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