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Two years ago,David,Edward and Fred formed a partnership for the purpose of running a garment trading business in a shop, by a partnership agreement in writing.Fred has never taken part in the management of the business even though he made the same fi nancial contribution to the partnership as other partners.Ever since last year,David andEdward have made use of the shop and the services of the employees of the partnership to carry on a sports equipment trading business.David andEdward have never informed Fred about the sports equipment business and shared with Fred the profit they earned from the sports equipment business.Fred has just learnt about the sports equipment business and requestedDavid andEdward to let him inspect the accounts of the partnership. Fred has also demanded thatDavid andEdward share the profi t they have earned from the sports equipment business.Required:In relation to partnership law, adviseDavid andEdward as to Fred’s right to inspect the accounts of the partnership and share the profi t they have earned from the sports equipment business. (10 marks)

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