Business LawIssues:1.Whether Wayne is liable to pay $2,50,000 to Michelle for the share of her $5,00,000partnership debt?2.Whether the agreement entered into by both the parties is legally binding as it wasformed on the false statement of Wayne?3.If the agreement is valid, whether Michelle can rectify the amount wrongly mentionedin the agreement?Rule:That section 9 of the Partnership Act, 1892 of NSW deals with the liabilities of the partners.As per section 9 of the said act, every partner of the partnership firm is jointly liable alongwith the other partners for every debt and duty of the partnership firm till the time he is thepartner, and after the death of that partner, his legal heirs is also liable severally for the debts.Misrepresentation Act, 1972: Under the Misrepresentation Act, 1972, if the person enteredinto the contract by making the false statement i.e., Misrepresentation then the aggrievedparty is at liberty to take action as per the act i.e. to rescind the contract or to claim thedamages for the same. But it is most important to mention here that if the person somehowcompletes the terms of the contract, the contract can be valid.Under the Contract Law of Australian, if due to some mistake or lapse, the written agreementdoes not reverberate the actual contract and one of the parties did not agree to rectify thecontract, then the aggrieved party can step towards the court to rectify the agreement. It isfurthermore relevant to mention here that the rectification is the discretionary remedy and thecourt might refuse to rectify the agreement even on the valid grounds of rectification.2

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