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Alice, Belinda and Cherry run a shop as partners. The partnership deed states that only Alice can buy goods on behalf of the firm. Yesterday, in contradiction of this, Belinda bought a large quantity of new stock from Duncan. Alice and Cherry think that Belinda paid far too much for the stock and that it will be very difficult to sell. Two days ago, Alice negligently spilt some oil on the shop floor and failed to clean it up. A customer slipped on the oil and badly injured herself. The partnership had failed to renew its insurance policy and so there was no insurance in place at the time of the accident. It seems likely that the firm has not got enough money to pay the likely damages to the injured customer and to pay Duncan's bill. Advise the three partners of their legal position in respect of the above facts.
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