Tom, Dick and Harry are brothers. They are partners and registered co-owners of the Shirt Shoppe. The three brothers have orally agreed that profi ts would be shared equally and that no partner shall, in the name of the fi rm, place any order for goods exceeding $5,000 per invoice on credit without the consent of at least one other partner.Dick did most of the buying for Shirt Shoppe. Shanghai Tailors Pte Ltd was one of their largest suppliers. Recently however, the brothers have not been satisfi ed with the quality of Shanghai Tailor’s shirts, and they agreed not to order from Shanghai Tailors Pte Ltd in future. In August 2009, due to an oversight, Dick ordered stocks of shirts worth $6,000 on credit from Shanghai Tailors Pte Ltd in the name of Shirt Shoppe. When Tom and Harry found out about the order, they were very upset and told Dick that they were not going to pay Shanghai Tailors.Required:Discuss whether Shirt Shoppe is liable to pay Shanghai Tailors for the stocks ordered by Dick. (10 marks)
