THE INSTITUTE OF CHARTERED ACCOUNTANTS OF NIGERIA SKILLS LEVEL EXAMINATION - BUSINESS LAW QUESTION 1 Ade, Baba, and Chidi entered into a general partnership operating under the firm name "ABC & Co. Enterprise" in Ikeja, Lagos State, engaged in trading agricultural produce. The partnership agreement was oral, and profits were shared equally. Over the past financial year, the following events occurred: (i) Ade secretly established a private farm produce business and sold commodities to ABC & Co. Enterprise at inflated market prices without disclosing his ownership interest to Baba and Chidi, making a secret profit of ₦4,500,000. (ii) Baba used one of the partnership's delivery trucks to operate a private night-haulage business for third parties, generating a profit of ₦2,000,000, which he retained for himself. (iii) Chidi, aggrieved by the actions of Ade and Baba, intends to apply to the High Court of Lagos State for a judicial decree of dissolution of the partnership. Required: (a) Advise the firm on the legal duties breached by Ade and Baba under the Partnership Act 1890 / Partnership Law, and the remedies available to the firm against them. (8 marks) (b) State FIVE grounds upon which a court may decree a dissolution of a general partnership on the application of a partner. (5 marks) (c) Explain the statutory rules governing the distribution of assets upon the final settlement of partnership accounts during winding up. (7 marks) (Total: 20 marks)