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Report on Case Study of Sherlock and Watson Toys Partnership

Added on - 03 Dec 2019

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Case study
TABLE OF CONTENTSIntroduction......................................................................................................................................3Question 1........................................................................................................................................3Legal provisions...........................................................................................................................3Legal bounding of partners for order placed by Jason Hudson...................................................4Termination of partnership..........................................................................................................5Question 2........................................................................................................................................5Legal provisions...........................................................................................................................5Documentations for the appointment of Director as per Companies Act 2006...........................7Removal of director and protection from the removal as directors.............................................7Conclusion.......................................................................................................................................8References........................................................................................................................................92
INTRODUCTIONBusiness organisation in UK can be incorporated in various forms in accordance with thesuitability of owners. For each type of business, different provisions are described by Britishlegislation. In this aspect, partnership firms are governed by Partnership Act 1890 and corporateentities are governed by Companies Act 2006 (Ferran and Ho, 2014). Present report is based onapplicability of these provisions on the given case study of Sherlock and Watson ToysPartnership. In this report, legal provisions of Partnership Act 1890 and Companies Act 2006will be discussed by consideration of case facts. On the basis of these provisions, advise will beprovided to theMelissa Sherlock on the stated legal matters.QUESTION 1Legal provisionsIn accordance with the legalisation of UK, partnership can be defined as association madefor carrying out business for the purpose of profit. Partnership agreement by parties can beconducted in oral and written form (Partnership Act 1890,1890). All the provisions ofPartnership Act 1890 are applicable, until and unless exceptional terms are expressly describedin the deed of the contract. Characteristics of partnership is enumerated below:Joint and individual liabilityIn accordance with the provisions of this Act, all the partners are jointly and severallyliable for the action of one another. However, in this aspect sleeping partners are not covered. Itis because; they had only provided investment amount and they not actively participate in themanagement activities of business. Due to this aspect, they cannot be held responsible for thedecision made by the active partners.All the partners are considered as agent of the partnership firm and of the other partnersof the business. By considering this aspect, Partnership Act states act that act conducted by apartneron in the usual way ofbusiness will be considered on the behalf of firm. For such kind ofconduct, all the partners will be held liable (Palmer, 2014). However, this provision will not beapplicable in situation where partner does not have authority to act on the behalf of firm inparticular matter. In addition to this, other party is not aware of the fact that partner does nothave authority tp do so and he considered him as an authorized person.3
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