Partnership Act of 1981: Case Study Analysis
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Added on 2019-09-23
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This assignment covers the provisions of Partnership Act of 1981 with the help of a case study. It discusses the identification of partners, their responsibilities, and the liability of partners in case of debt. It also covers the employment laws of Australia and the rights of employees. The references include books, journals, and websites.
Partnership Act of 1981: Case Study Analysis
Added on 2019-09-23
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SCHOOL OF LAWBLW17 Business LawASSIGNMENT COVER SHEET First Family Student IDStudent’s Name:ASSESSMENT - CASE STUDY Word length required 2,000 words Actual word lengthDue date: THURSAY 25THJANUARY, 23.00 (11.00 PM SOUTH AUSTRALIAN TIME)`I declare that the work contained in this assignment is my own, except where acknowledgement of sources is made. I authorise the University to test any work submitted by me, using text comparison software, for instances of plagiarism. I understand this may involve the University or its contractor copying my work and storing it on a database to be used in future to test work submitted by others. I understand that I can obtain further information on this matter at: http://www.unisanet.unisa.edu.au/learningconnection/student/studying/integrity.aspNote: The attachment of this statement on any electronically submitted assignments will be deemed to have the same authority as a signed statementSigned:Date:Type your answers here (Use minimum 11 point font and 1.5 or double line spacing)
IntroductionThe partnership is a type of a business conducted by two or individuals. In addition to this inthe partnership business, all the members have equal responsibilities while carrying thebusiness-related activities. On the other hand in the partnership business, all the businessrelated activities and responsibilities are equally divided by the members of the business.Contrary to this all the profits of the business are equally divided among the businesspartners. On the other hand, all the partners are equally responsible for paying the debt of thebusiness. In the present assignment, the provisions of the Partnership Act of 1981 will bediscussed with the help of the given case study.Answer 1Issue In the given case study it has been mentioned two friends are planning to launch an IT inwhich they will invest an equal amount of capital. Therefore in this part identification of thepartners are needs to be pointed out in order to carry the business-related activitiessuccessfully.Rule In addition to this, another individual also invested in the business in order to enhance thebusiness activity of the business. According to the partnership act of 1891 partnershipbusiness can be launched between two people living in the same jurisdiction or in a differentjurisdiction. On the other hand, according to the partnership act, all the members of thebusiness are equally responsible for paying any kind of debt taken for the enhancement of thebusiness activities. In addition to this according to the partnership act of 1981, there is threekind of partnership business such as limited partnership in which the responsibility of thedebt is limited to the partner. Next comes the general partnership, according to thepartnership law of Australia when a business activity is being carried out between two ormore individuals is termed as a general partnership. Contrary to this if the relations betweenthe partners are mentioned in the book of corporation law then it cannot be termed aspartnership business. In the concerned law, it has also been mentioned that joint tenancy,owning common property or part ownership cannot be termed as partnership businessbecause it does not include equal investment. On the other hand, sharing the gross profit ofthe business among the individuals does not create partnership ownership (Tomasic et al.2014).Application of the rule
In the present case study, the partner act is to be applied in order to identify the partner of thebusiness. In the above case study, it is mentioned that initially the business was launched bytwo of the friend later another person joined in the business in order to increase the businessactivities. According to Warhurst et al. (2014), in the above case, Bob and Ali can beconsidered as the partners of the business because they have already invested an equalamount of capital for the productivity of the business. On the other hand, they have alsocreated a joint account in order to enhance the productivity of the business. Contrary to this ithas to be mentioned though Cheng has invested more capital in the business the individualcannot be the partner because he receives more amount of profit from the business. Andaccording to the general partnership Act an individual who receives a certain amount of profitfrom, the business cannot be considered as the partner of the business. As seen in the case ofLong V James Morrison 13 CLR 1, the third individual cannot be recognised as a partner inthe business as he receives a particular amount of profit money from the business (Long VJames Morrison 13 CLR 1, 2016). On the other hand in the case Gabby Gabriel CastleJackson advertising pty LTD and volume sales PTY Limited it has been seen that Volumesales cannot be termed as the partner of the advertising agency because the organisation hasalready earned a certain amount of profit from the sales volume ( Gabby Gabriel CastleJackson advertising pty LTD VS volume sales PTY Limited, 2015).ConclusionAccording to the partnership act of 1891 if an individual receives a certain amount of profitfrom the business cannot be considered as a general partner of the business. Therefore, in theabove case, Ali and Bob can only be considered as the partners of the business that has beenlaunched because Chen receives 8 percent profit from the output of the business and he usedto get paid on an hourly basis for doing the office work.Answer 2Issue In the present scenario, it is needed to be assumed that all the three individuals are in thebusiness and contribute to the enhancement of the business activity of the enterprise. On theother hand in the present scenario, the individual responsible for the debt of the softwarepurchased is needed to be pointed out In order to clear the debt on time without affecting theproductivity of the businessRule According to the partnership act of 1891 under section 2, it has been mentioned that moneyor assets need to be borrowed or lent to any other person by taking the consent of all themembers of the organisation. On the other hand, it has been seen in the law that all themembers of the organisation are equally responsible for repaying the debt. In addition to this,
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