A&J Associates had been formed as a partnership firm of Ali and his cousin, Javed. Clause 2 of the partnership agreement states ‘All business of the firm shall be transacted with mutual consent of the partners’. The business of the firm is cultivation of crops in Multan. They have routinely purchased fertilisers from King Pesticides Ltd. In September 2011, Ali proposed that they purchase fertilisers from Magic Pesticides Ltd (‘MPL’). Javed opposed this proposal citing MPL’s substantially higher prices. Ali also proposed that the firm expand its business to dealing in used cars. Javed showed some interest but said that he would consider that proposal upon his return from a three month long business trip to Germany.In Javed’s absence, Ali contracted with MPL for the supply of fertilisers. Ali also contracted with Qasim to supply ten used cars. Payments to both MPL and Qasim have not been made and each has brought separate claims for recovery of amounts due against the firm before the local civil court.Required:Under the Partnership Act, 1932, advise Javed on whether he is liable for any payments due to MPL and Qasim. (10 marks)
