1. Is “The Money Doctors” a partnership, and if so, who are the partners?
Main Issue:
To identify if “The Money Doctors” is a partnership and if so, who are the partners of the business.
Relevant Law:
Partnership is the relation which subsists between persons carrying on a business in common with a view of profit. There are four conditions in which all must be satisfy are the followings:
Agreement
Partnership relationship may be formed by deed, in writing, verbally and lastly by inference from the conduct of the parties. In Canny Gabriel Castle Jackson Advertising Pty Ltd V Volume Sales (Finance) Pty Ltd [1974] HCA 22; (1974) 131 CLR 321 where the court held that a partnership existed on four factors which were parties joined in a
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Prima facie Partnership
State of agency
Evidence found in the case that the existence of mutual rights and obligations between the partners together with the right to say in the management of business (all three partners must agree on major decision related to the firm).
Sharing of profit and losses
Joe, Shmo and Moe contributed capital to establish the firm which signaled the intent of sharing of profits and losses.
Intention of the parties
In this case, the intention of Joe, Shmo and Moe was to start up financial advisory services in Boyup Brook.
[S 8 (1)]
The intention for acquisition of building (through capital) was for business operation and therefore it proved that partnership between Joe, Shmo and Moe exists.
[S 8 (4)]
In this case, the $50,000 loan which Flo provides for the establishment of “The Money Doctors” were said to be repaid via profits made by the firm.
[S 8 (5)]
Flo was employed by “The Money Doctors” as an office manager on a salary of $45,000 per annum.
In accordance with the evidence stated on Partnership Act 1895 (WA) S 8 (4), (5), Flo will not be liable as a partner of “The Money Doctors”.
Conclusion
In accordance with Partnership Act 1895 (WA) S 7, S 8 (1), “The Money Doctors” is a partnership and the partners are Joe, Shmo and Moe.
2. Who is liable for the contract with ECO?
Main
The benefits of Partnership Company are that business is anything but difficult to build up and start-up expenses are low. There is more capital accessible for the business. Workers that are of high-bore are made accomplices. The burdens are that the obligation of the accomplices for the obligations of the business is boundless . There is additionally danger of differences and contact among accomplices and administration. Every accomplice is an agent of the partnership and is at risk for activities by different accomplices. This means that it brothers choose this type, they will be responsible for each other’s action irrespective of the fact whether they like it or
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CHAPTER 21 PARTNERSHIPS SOLUTIONS TO PROBLEM MATERIALS | | | | |Status: | Q/P | |Question/ |Learning | | |Present |in Prior | |Problem |Objective |Topic | |Edition |Edition | | | | | | | | | | | | 1 LO 1 Partnership definition New 2 LO 2 General partnership versus LLC New 3
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