Aaron, Bill and Carol were partners in a partnership named Aaron, Bill, Carol & Co. Carol retired from the partnership in May this year.One month after Carol’s retirement, under the name of the partnership and without informing or consulting Carol, Bill and Aaron entered into a loan agreement (‘the Loan Agreement’) with a bank (‘the Bank’), which was the first time the partnership had done business with the Bank. Pursuant to the Loan Agreement, the Bank lent to the partnership the sum of HKG $3 million (‘the Loan’).The partnership has been unable to repay the Loan, and the Bank has decided to commence legal action against Carol for the repayment.Required:In relationship to partnership law:Advise Carol as to whether she would be liable for the repayment of the Loan.Note: You may assume that the partners had authority to enter into the Loan Agreement. (10 marks)
