Business Laws - Sample Assignment PDF
8 Pages2302 Words42 Views
Added on 2021-06-17
Business Laws - Sample Assignment PDF
Added on 2021-06-17
ShareRelated Documents
Running head: BUSINESS LAWSBusiness LawsName of the studentName of the universityAuthor note
1BUSINESS LAWSAnswer 1Issue Whether there is a partnership between Samuel, Thomas and PetaRule The Partnership Act 1963 (Cth) provides rules and regulations for the purpose of governing apartnership business structure in Australia. The meaning of the term partnership is provided by asection 6 of the act. Section 7 specifically provides for the rules through which a partnership is tobe determined. According to Section 6 of the act a partnership is a relationship between peoplewho want to carry out a business with a common view of making profit.Section 7(1) of the Act states that the rules of determining whether a relationship is a partnershipor not are provided by the provisions of subsection 2-4It has been stated by section 7(2) that a tenancy in common, joint Tenancy, part ownership or ajoint property does not create a partnership in itself with respect to anything which is owned orheld irrespective of the owners or tenants sharing or not sharing profits through the use of theowned or held things.It has been stated by section 7(3) that only the sharing of gross returns in itself, does not form apartnership irrespective of the person sharing the returns have common interest or rights in anyproperty from which such returns are derived. It has been stated by section 7(4) that when a person receives the share of profit from thebusiness it is everything that such person is to be regarded as a partner of the business. However
2BUSINESS LAWSreceiving search shares only does not make the person a partner. The circumstances in which theperson cannot be regarded as a partner are provided through sub section 7 (4) (a-e).When a person receives a debt or other forms of liquidated damages from the accurateprofits of the business it does not in itself become a partner. A child or spouse of a deceased partner who through periodic payments get a part of theprofit which has been made by the business cannot be regarded as a partner only becausehe is receiving such profits. Any employee or agent who has been employed by the business cannot be regarded as apartner only because they are provided with the share of profit. When a person provides a loan to a business in a written format which is signed by allother partners and this also entitled to get an interest for such loan cannot be regarded asa partner only for providing such loan. Further at common law the case of Smith v Anderson (1880) 15 Ch D 247 stated that there are afew elements through which a partnership can be determined. These include carrying out abusiness, in common and for making profit. If any of such elements is not present there is nopartnership. In the case of Wise v Perpetual Trustee Co Ltd [1903] AC 139 it been held by thecourt that parties must have the intention of doing business for the purpose of making profit inorder to be called partners. Application In the given situation it has been provided that Samuel, Thomas and Peta have initiated abusiness where they use the internet to resell the assets of the company which is going into
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Commercial and Corporation Lawlg...
|10
|2373
|125
Business Laws Issue - Assignmentlg...
|9
|2236
|23
Business Lawlg...
|7
|1847
|66
Business Law Assignment : NSWlg...
|9
|2347
|40
Business Lawlg...
|10
|2378
|336
Corporate Law: Partnership Formation and Director's Dutieslg...
|8
|2293
|470