Clare, Dan and Eve formed a partnership 10 years ago, although Clare was a sleeping partner and never had anything to do with running the business. Last year Dan retired from the partnership. Eve has subsequently entered into two large contracts. The first one was with a longstanding customer Greg, who had dealt with the partnership for some five years. The second contract was with a new customer Hugh. Both believed that Dan was still a partner in the business. Both contracts have gone badly wrong leaving the partnership owing ￡50,000 to both Greg and Hugh. Unfortunately the business assets will only cover the first ￡50,000 of the debt.Required:Explain the potential liabilities of Clare, Dan, and Eve for the partnership debts. (10 marks)
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