Assignment task:
Peter and Lois are in business together, providing financial advice and accounting services. Due to their different experience, Peter handled the financial advice and Lois looked after the accounting clients. Unfortunately, their business has not been performing well.
Peter and Lois invite their friend Stevie to help with the business. He invested $100,000 into the business, which they called a loan. Stevie was to receive a share in profits at the end of each financial year and would have input into how the business was run.
Following the investment of Stevie, the business begins to improve. Peter purchased an expensive Type-X 10 computer on which to run his financial analysis models. Lois was furious at the $74,000 price tag and challenges Peter's right to purchase the computer without her consent by refusing to authorise payment of the purchase invoice.
Following the purchase of the computer Peter has become increasingly distracted by the new computer and is often careless in the advice he gives to clients. Chris and Meg, two of Peter's clients have recently suffered a significant loss as a result of following the careless advice given them by Peter.
Would the business which supplied the computer be successful in suing for payment of the sum due ($74,000) despite a term in the partnership agreement which required approval of all partners to any purchase in excess of $10,000. Give your answer and cite your sources.