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Business Law Assignment : NSW

   

Added on  2021-05-31

9 Pages2347 Words40 Views
Running Head: BUSINESS LAWBusiness LawName of the Student:Name of the University:Author Note
Business Law Assignment : NSW_1
1BUSINESS LAWAnswer 1Issue Whether Thomas, Samuel and Peta are in a partnership relationship or not as per the provision ofPartnership Act 1892 (NSW) ?Rule The rules of partnership in NSW are governed by the provisions of Partnership Act 1892. Thislegislation is used to determine whether partnership is present between parties in a businessrelation is present or not. Part 2, Division 1 section 1 of the PA 192 gives out the meaning of partnership. According to thesection partnership can be defined as relationship which is present between people who indulgeinto business activities in common and have the view of making profit. Part 2, Division 1 section 2 of the PA 1982 provides the rules for finding out whether apartnership is present or not between individuals. According to the section joint property, jointtenancy and tenancy in common along with any form of part ownership is not adequate for thepurpose of creating a partnership in relation to any property owned in this manner whether or notthey share profits or not form such property. Merely when individuals in the business share the returns arising out of it a partnership is notcreated it also requires the having joint property, joint tenancy and tenancy in common alongwith any form of part ownership
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2BUSINESS LAWSharing of profits among parties to the business confirms that there is a partnership between suchindividuals. However only getting a share or contingent payment does not render suchindividuals as being the partnersLiquidated damages or a debt received by a person via making an investment through the profitsmade by the business does not make such person a partner in the business or liable for the actionsof the actual partners. When there is a contract for paying wages to a person with the business out of the profits earnedby the business does not make such person or employee the partner of the business or liable forthe actions of the actual partners. A person who is associated with a deceased partner and receives in form of annuity money whicharises out of the profit does not make the person a partner of the business or liable for the actionsof the actual partners. When money is advanced by a person in form of a loan to the business with a contract that suchperson is entitled to receive a rate of interest or a share of money from the profit it does not makesuch person a partner of the business or liable for the actions of the actual partners. A person who gets money in consideration of profits arising out of the sale of goodwill in thebusiness does not make the person a partner only for such reasons or liable for the actions of theactual partners. According to Cohen (2017) the common law definition of partnership is a relationship betweenthe parties where they indulge into a “business in common” and such business is carried out withthe “view of making profit”. In the case of Trimble v Goldberg [1906] AC 494 it had been stated
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