Thabo, Monty and Simon formed a partnership six years ago and registered it in terms of Partnership Proclamation, 1957. The sole business of the partnership is to sell all kinds of furniture. Since Thabo was forever travelling because of his job, all the partners agreed that Thabo would be a sleeping partner. Thabo never participated in the running of the partnership business and was content with his share of profits.In 2008, Monty entered into two contracts on behalf of the partnership. The fi rst one was with Kramer, a long-standing supplier, to supply several kinds of oriental furniture. Kramer was paid R150,000 in advance.The second contract was with a new customer, Tsiu Hu, who ordered oriental furniture of the type Kramer had earlier agreed to supply. Kramer’s business went bankrupt and there are no prospects of either getting the advance back, or the promised furniture. Tsiu Hu had made it clear that if the furniture was not supplied on time, he would sue for breach of contract and claim compensation, which is likely to be over R50,000. Unfortunately the total business assets of the partnership are only R5,000.Required:Explain the potential liabilities of Thabo, Monty and Simon for the partnership debts. (10 marks)
