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Aaron,Bill andCarol were partners in a partnership namedAaron,Bill,Carol &Co.Carol retired from the partnership in May this year.One month afterCarol’s retirement, under the name of the partnership and without informing or consultingCarol,Bill andAaron entered into a loan agreement (‘the LoanAgreement’) with a bank (‘theBank’), which was the first time the partnership had done business with theBank. Pursuant to the LoanAgreement, theBank lent to the partnership the sum of HKG $3 million (‘the Loan’).The partnership has been unable to repay the Loan, and theBank has decided to commence legal action againstCarol for the repayment.Required:In relationship to partnership law:AdviseCarol as to whether she would be liable for the repayment of the Loan.Note: You may assume that the partners had authority to enter into the LoanAgreement. (10 marks)

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