Abstract: The purpose of this research assignment is to explain and elaborate the Australian partnership and fiduciary laws. And also the duties and obligations that partners owes to one another. In accordance with the general rules of partnership and agency relation in Australian commercial and business law. Introduction: In the firm named Y & W partners, me and Alex Wolfe were working together. I am an accountant and under the firm Y & W partners we provided audit and taxation services and advices but we were not dealing with the strategic investment advice. One of Wolfe’s clients, Golden Egg Pty Ltd gave advices to wealthy individuals about investment strategies by using taxation advices from Wolfe. Wolfe established a firm named Superb …show more content…
The principal is liable for the actions of his agent acting within the actual scope of authority, whether in the knowledge of principal or not. Under the doctrine of vicarious liability, one person is responsible for the wrongful act of another because of the legal relationship between the two. And principal can be sued by a party to the contract if any liability arises due to his agent’s act, which the agent has done on behalf of principal under the normal course of his authority. Reference: Latimer, Paul Australian Business Law. Fiduciary obligation: The word ‘fiduciary’ has its roots in the Latin word ‘fiducia’ which means Confidence. A fiduciary relationship is thus a relationship of confidence A legal obligation of one person to act in the best interest of other person. The obliged person is typically called a fiduciary. The fiduciary acts on behalf of the other person (the principal). Fiduciary duties exist in the partnership as all partners are equally responsible under fiduciary obligation to each other. Fiduciary relationship may exist commercially and professionally between the following: 1. Solicitor and client 2. Director and