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Chien and Thang are young motor mechanics who set up an unlimited partnership to service and repair motor vehicles.Chien is single and has few personal responsibilities. He is able to live comfortably from his share in the profits of the partnership. By contrast, Thang has family commitments and has experienced financial difficulties.Chien has discovered that Thang has been returning to their rented workshop after normal business hours to work on vehicles in his own time. Thang has been offering his services at a substantial discount to the partnership’s usual hourly rates for labour. When confronted by Chien, Thang said that what he did in his own time was his own affair. He refused to reveal the true extent of the work that he had done in a private capacity.As a result of this disagreement, Chien has decided that he no longer wishes to work with Thang and will engage Hien as a partner to replace Thang.Required:

(b) Explain whether Chien can appoint Hien to the partnership to replace Thang. (4 marks)

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