Question

1. Ali and Abu entered into a partnership agreement. They both ventured into a second-hand car business with a view of getting profit. Ah Kau a second-hand fishing boat dealer made an offer to Abu a fishing vessel for RM 10,000.00. Abu has a knowledge that there is a prospective buyer Ahmad who is willing to purchase the same fishing vessel for RM16, 000.00. In the law of partnership advise Abu.

Answer 1

A partnership agreement defines the relationship between two or more individuals in a partnership firm. In case of failure, the other partners can take the necessary steps and actions. There are a few main elements to a valid contract: offer, acceptance, consideration, validity, and competence of the parties. The parties should fulfill the requirements to make a contract valid and legal. In the current scenario, a second-hand fish dealer made a deal with Abu and gave him an offer of RM 10,000. However, Abu did not accept the offer. Hence, they have not reached an agreement, which states that it is not a contract. However, Abu wants to buy it from a prospective buyer who is willing to pay more for the same commodity. Abu can discuss it with his other partner, Ali, and accept the prospective buyer's offer. It will be a valid contract because both the parties are willing to sell and buy from each other. There will be an offer, acceptance as well as consideration of RM16,000. There is no wrong in taking this step because the partnership agreement's main motive is to earn and divide the profits. The partners should enter into an agreement that provides them profits without any social harm. Hence, Abu should sell it to the second buyer who is willing to pay more for the same commodity.