Question
Rose, Mary, Violet and Sonny are the best of mates. Rose and Mary run the Busy Bee Florist Shop in partnership with each other. Due to a long drought and unseasonal weather, the business bank account is overdrawn and the Friendly Bank is refusing to honour any more cheques. Rose approaches Violet for a loan in return for a share in the business. Violet agrees to lend the partnership $20,000 in exchange for the drawing up of a loan agreement which was to document, among other things, the following terms:
· The lender will receive a share of the profits and losses to the extent of 20 per cent.
· The lender has a right to examine the partnership books at will.
· The lender has a right to receive a quarterly business statement.
· The money advanced is a loan and the lender is not to be regarded as a partner of the business.
Rose executes the loan document, as requested, prior to Violet advancing the money. Both parties signed the loan document. Meanwhile Mary approaches Sonny, who is also their employee, for a loan.
Sonny agrees to lend $10,000 to Mary but he requires some interest on the loan. A deal is struck which results in Sonny receiving his salary plus a one-eighth share of the net profit (or a one-eighth share of the firm’s losses) in consideration for making a loan to the firm.
Rose and Mary inform the Friendly Bank that Violet and Sonny are now partners in the Busy Bee Florist Shop. Business continues to decline and Rose and Mary secretly decide to take an extended holiday in the Congo Basin.
Both Violet and Sonny were unaware of the large debt owing to Friendly Bank and believed the purpose of their loans was to expand the business of the Busy Bee Florist Shop. Friendly Bank seeks to recover debts owing by the Busy Bee Florist Shop from Rose and Mary.
Advise Violet and Sonny of their potential liability to Friendly Bank in relation to the Busy Bee Florist Shop.
1. Issue: Can Violet be considered as a partner? Explain (3 marks)(450 words limit).
2. Issue: Can Sonny be considered as a partner? Explain (3 marks)(250 words limit)
3. Issue: Did Violet and Sonny allow themselves to be held out as partners? Explain (2 marks)(150 words limit).
4. Question: If Violet is a partner will she be liable to Friendly Bank? Explain (2 marks)(150 words limit).
The Partnership Act 1958 (PA) Victoria (Vic) defines about the partnership. A partnership is a connection between two or more persons to carry out business with an object to profit (Griggs, Cho, Mclaren, & Scheibner, 2018). Sec 3 of the PA defines about the partnership
MyAssignmenthelp.com is an internationally recognized legit online coursework help provider in USA. With a team of experienced and qualified coursework writers, we provide the highest quality products that are free from plagiarism. Our experts work round the clock to satisfy students demands like can experts Write my coursework assignments or can anyone do my coursework assignments and provide them the best writing solutions.
Just share requirement and get customized Solution.
Orders
Overall Rating
Experts
Our writers make sure that all orders are submitted, prior to the deadline.
Using reliable plagiarism detection software, Turnitin.com.We only provide customized 100 percent original papers.
Feel free to contact our assignment writing services any time via phone, email or live chat. If you are unable to calculate word count online, ask our customer executives.
Our writers can provide you professional writing assistance on any subject at any level.
Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.
Get all your documents checked for plagiarism or duplicacy with us.
Get different kinds of essays typed in minutes with clicks.
Calculate your semester grades and cumulative GPa with our GPA Calculator.
Balance any chemical equation in minutes just by entering the formula.
Calculate the number of words and number of pages of all your academic documents.
Our Mission Client Satisfaction
Thank you, thank you, thank you. i already get A for this subject because i'm using my assigment help. actually it really helping me so much. My lecture has been proud of me. Thank you to expert team from assigment help they are really friendly, they...
Australia
My instructor was quite impress. However, there were too many grammatical errors present especial spelling please remember that certain words are spelt differently in the USA.
Australia
the expert he do his best in this assignment and he delivered to me in the time and I get high marks. i appreciate the expert who work for me on this assignment
Australia
I appreciated his work I will recommend this site to all my friends. the expert he do his best in this assignment and he delivered to me in the time and I get high marks,
Australia