Legal Structures for Business Ventures: A Case Study

Desklib provides solved assignments and past papers to help students understand complex legal concepts.

Organizations law

Contents
Organizations law............................................................................................................................1
Introduction......................................................................................................................................3
(i) ) Do you think it is a good idea for Kai, Sen, Luc and Mitsi to continue without discussing
the exact legal arrangements between them? Why or why not?..................................................4
(ii) Based on these facts, is it possible that Kai, Sen, Luc and Mitsi have formed a partnership
despite not specifically discussing this?......................................................................................5
(iii) What would you suggest Kai, Sen, Luc and Mitsi do if they want to establish their
business as a partnership?............................................................................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

Introduction
Organisation law is considered to be one of the most important law for the business organisation
in the country. This law refers to the numerous way so as to make the business legally formed
under the law that is defined by the government of the country. It is seen that the partnership act,
contract law and the company’s law forms the main part of the law for the same. This is seen that
there are various forms of business organisation, tax, management and the liability of the
different business organisation changes as per the specified law in the country (Hodge & Greve,
2018). This report is based on the analysis of the colleagues where they have decided to perform
the business in the different nature in which they are working. It is seen that they have to form
the partnership firm but due to certain condition they are not forming the same. Hence the issue
would be solved in this report and also the legal obligations would be told to them so as to
achieve the objective of making it one of the best partnership firm.

(i) ) Do you think it is a good idea for Kai, Sen, Luc and Mitsi to continue without discussing the
exact legal arrangements between them? Why or why not?
This is seen that the partnership is considered to be the form of business structure where the
partners are responsible for the acts that are defined by the business organisation together. This is
seen partnership is considered as the platform where the owners of the business comes together
so as to form the business and to achieve the objective of doing the operations of the business
together. This is seen that partnership business is the form of association that is formed between
the owners of the business so as to share all the terms and condition that are related to the
business organisation and related to the operations of the business (Khan, et. al., 2015). This
helps the business organisation to achieve the objective of shared profits. It is seen that through
this the owners of the business are able to share the information that relates to the business as
they are able to maximise the performance for the same.
This is seen that all the so called partners who wants to do the business together but not specified
as to start the business together. Hence this is seen that the idea of all of them is considered to be
incorrect. This is seen that the as they have contributed for the setting up of the business and they
all shared the rented premises. Therefore it is considered as the bad idea of all of them for not to
discuss the exact legal arrangement between them. This is seen that if they define the legal
arrangement between them then it would help them to achieve the objective of making the rules
and regulations more specific. This is seen that if the legal arrangement are not made then they
would not able to sue the other person for any breach or unlawful act that is done by individual.
They would also be not able to make any other person binding as per the terms that are decided
among them. It is also seen that they would not be able to make the contract with the other
person as one entity. Also if they want to end the terms that are made by them then they would
not be able to do so with the help of law as they are not making it according to the legal
arrangement and decided terms.
Hence this is suggester to them to form the legal arrangement between them so that they are able
to achieve the objective of having the legal terms between them.

(ii) Based on these facts, is it possible that Kai, Sen, Luc and Mitsi have formed a partnership
despite not specifically discussing this?
The term partnership is considered to be the business organisation where there exist a relation
between the people who are carrying the business with the common objective of getting the
profits and includes the incorporated limited partnership as defined in the partnership act, 1963.
This is also seen that the relation between the members of the corporations whether this is
formed or not or is outside the act is not considered to be the partnership under this act (Liu &
Wu, 2016). This is seen that the partnership act also defines the terms that relates to the
formation of the partnership. Hence for this purpose the section 2 of the act defines existence of
partnership. There are various terms that are described for this purpose which includes,
 Joint tenancy, this is seen that there is joint tenancy and the tenancy is considered to be
common for this purpose. This is seen that the part of tenancy itself does not form the
partnership.
 Sharing of the gross profit or loss, this is seen that the gross profit and any other form of
sharing must be there so as to form the partnership business for the same.
 The receipt of the share by the person is also considered to be the evidence of having the
partnership between the individuals.
Hence this is seen that if one of the element is fulfilled then it would lead to formation of the
partnership among the people. Therefore this is seen that if these terms are followed between
them then they have formed the partnership and they are required to follow the rules that are
specified in the partnership rules (Macneil & Liu, 2017).

(iii) What would you suggest Kai, Sen, Luc and Mitsi do if they want to establish their business
as a partnership?
This is seen that for the purpose of formation of partnership there are various requirements that
the people thinking of forming the partnership required to perform. This is seen that the for the
purpose of formation of the business the individuals have to make the partnership deed that is
considered to be one of the most important document which requires to be signed by the
individuals so as to accept the terms that are defined in the partnership deed (Mazerolle, et. al.,
2017). It is also important for them to decide the terms of sharing profit among them as this
would lead them to achieve the objective of agreeing with the terms of the law and the
regulations that are made there under. This is seen that all the powers of the partners which bind
the firm should also be defined under this deed. Also the liability of the partner should also be
defined under this act and the deed. They should also specify the terms of the admission and the
representation of the partners. Hence this is seen that all of them should enter into partnership so
that they are able to legally form the business legally. This is also seen that for this purpose they
have to make it registered with the registrar so as to make it more legal.
This is seen in the case of Marshall vs Marshall, here the plaintiff had the expectancy of the
marshal’s asset and where he promised during the lifetime to give one half of the inheritance and
made gracious gifts to her when she is alive. It was seen that the defendant interfered where he
said that the he depleted the marshal asset by purchasing the annuities when marshal said to be
serious for the same. Also the restriction to plaintiff access to the marshal income, also
backdating and altering the documents hence these are considered to be various objectives for the
same (McQueen, 2016).
Hence in this case it was held that plaintiff had the financial expectancy of the testator as he
promised to give plaintiff a certain amount and this was seen he was not abele to make the valid
will due to defendant fraudulent acts. Hence this is seen that defendant’s actions resulted in
tortuous activity. Hence here the court found that tortuous interference with the expectancy exists
where if the gift that is supposed to be given at the time of death is given at lifetime is considered
correct.

Conclusion
From the above report this can be concluded that there are various laws that are formulated by
the government of the country. Hence one of the law includes the partnership act which is
considered to be the part of organisation law and help in formation business. This is seen that it
is important for the individuals to consider the provision of partnership law. As in the above case
this is seen that if the legal partnership is not registered then there would be various disadvantage
that they can face and it can also result in loss to the partners. Therefore this is seen that it is
important for the managers to make the consensus and form the partnership so as to achieve the
shared profits.

References
 Hodge, G., & Greve, C. (2018). Contemporary public–private partnership: Towards a
global research agenda. Financial accountability & management, 34(1), 3-16.
 Khan, U., Pallot, R., Taylor, D., & Kanavos, P. (2015). Transatlantic Trade and
Investment Partnership: international trade law, health systems and public health.
 Liu, S., & Wu, H. (2016). The ecology of organizational growth: Chinese law firms in the
age of globalization. American Journal of Sociology, 122(3), 798-837.
 Macneil, J., & Liu, Z. (2017). The role of organizational learning in soft regulation of
workplace gender equality. Employee Relations, 39(3), 317-334.
 Mazerolle, L., Antrobus, E., Bennett, S., & Eggins, E. (2017). Reducing truancy and
fostering a willingness to attend school: Results from a randomized trial of a police-
school partnership program. Prevention science, 18(4), 469-480.
 McQueen, R. (2016). A Social History of Company Law: Great Britain and the
Australian Colonies 1854–1920. Routledge.