Corporation & Enterprise Law - Assignment

Corporation & Enterprise Law
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Table of Contents
Answer 1: Business entities.............................................................................................................3
Facts.................................................................................................................................................3
Issue.............................................................................................................................................3
Rule..............................................................................................................................................4
Application..................................................................................................................................5
Conclusion...................................................................................................................................6
Answer 2: Contract..........................................................................................................................6
Facts.............................................................................................................................................6
Issue.............................................................................................................................................7
Rule..............................................................................................................................................7
Application..................................................................................................................................8
Conclusion...................................................................................................................................9
Answer 3..........................................................................................................................................9
References......................................................................................................................................10
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Answer 1: Business entities
Issue
1. Is Rebecca potentially liable with regard to the demanded payment of the unsettled bill of
$1500 by Ooh Orchids?
2. Is Rebecca potentially liable with regard to the damage of $5000 caused to the car of
another driver?
3. Is Rebecca potentially liable with regard to the separate business of selling flowers
specifically for weddings without informing Joel?
Rule
1. As per Section 1(1) of the Partnership act 1892 (NSW) (‘the Act’), ‘Partnership’ refers to
the relation existing between the persons doing business with a purpose to attain profit as
well as take account of incorporate limited partnership (legislation.nsw.gov.au, 2012).
 Doing business refers to the ongoing activity by the parties in context of the
business- Khan v. Miah (2000)
2. Section 9(1) of the Act states that all the partners in the firm are liable for all the debts
and obligations of the firm in general partnership (legislation.nsw.gov.au, 2012).
3. Section 10 (1) of the Act states that the firm is equally liable as the partners for acting or
omitting to act and the penalty is incurred upon, for any kind of wrongful act or omission
by the partners in the firm, and in this course, loss or injury is caused to others who are
not the partner (legislation.nsw.gov.au, 2012).
4. Section 30(1) of the Act states that it is the duty of the partner not to act in a manner to
compete with the firm. The section states that if a partner carries on any business of
similar nature, which can give competition to the existing business without the
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permission of the other partners in the firm, it is the responsibility of the partner to
comprise and to pay over all the profits to the firm made in that business
(legislation.nsw.gov.au, 2012).
Application
According to Section 9(1) of the Act, it is the potential liability of Rebecca to pay the
unsettled bill of $1500 by Ooh Orchids because of unlimited liability on her for all the debts
and obligations incurred upon the business.
As per the elements of partnership in the Act, it has been stated that the liability of the
partners remains unlimited in case of a general partnership. As per Section 1(1) of the Act,
the partners remain responsible for all the profits and losses incurred by and to the business.
It has been decided by Rebecca and Joel that both will conduct a business together and after
extensive market research, both decided to conduct online florist business named ‘Fusion
Flowers’. The profit was to be equally distributed in 50:50 ratios. So, both decided to conduct
a common business with a view to attain profits equally.
As per Section 10(1) of the Act, it is the responsibility of the firm to be liable for the acts or
omission by the partners in the process of doing business. That is why, if she has not been
informed about the purchase of expensive flowers, she should discuss the matter with him
but payment must be cleared by her on behalf of the company (Commonwealth of Australia,
2019).
In accordance with section 10 (1) of the Act, which states that the firm is equally liable as the
partners for acting or omitting to act and the penalty is incurred upon, for any kind of
wrongful act or omission by the partners in the firm, and in this course, loss or injury is
caused to others who are not the partner, the damage of $5000 caused to the car of another
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