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Business Law Partnerships

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Well I must love going through my old assignments as I just found another one that looks good. This time is all about Partnerships in a Business Scenario.

This case involves the law of business in Particular whether a Partnership exists and whether a Salaried Partner is liable to the creditors for the debts of other partners.

Partnership:

 A Partnership is defined as individuals carrying on a business in common to a view to profit.

Salaried Partner:

  They are promised definite salary to a certain amount. But in regards to law they are just advances of salaries in expectation of profit.

Well here we go the Scenario Scene:

Peter Toohet and Glen Stabb are partners in an Accounting partnership. They trade under the business name of Toohey and Stabb. In December 1985 they employ an employee accountant, Sandy Edwards. Sandy was paid $30 000 per year together with 5% of the net profits of the firm.

In December 1989 both Peter and Glen agreed to make Sandy a Salaried partner. She was now to receive 10% of the gross profits of the firm. Her name was to appear on the firm’s letterheads and she had agreed to this, she was introduced to all of their clients for the firm as a Partner. However, she took no part in the management of the firm. It was agreed that she would not be liable for any of the trading losses of the firm.

In January 1992 the firm opened a trust account in which it invested clients’ money. In March 1995 both Peter and Glen absconded with the firms trust account and left debts totalling $100 000. The creditors for the firm commenced legal proceedings against Sandy, claiming that as a partner in the firm she is jointly liable with Peter and Glen. The Creditors seek to recover $100 000 from Sandy as both Peter and Glen are in Tel Aviv, Israel, a country which has no extradition treaty with Australia. Advise:

Whether Sandy is a Partner as between Peter and Glen?

Well the conclusion for the first part of this is that  she was portrayed at first as a Salaried Partner, so under section 9 of the act she is just a salaried partner and not liable for the firms expenses etc.

 Whether Sandy is a partner between herself and the creditors?
Unfortunately Yes Sandy is a Partner towards the creditors, because she portrayed herself to be one under section 18 of the act.

Whether Sandy is jointly liable, with Peter and Glen for the $100 000 owed by the firm to the firm’s clients?

Unfortunately for Sandy it be difficult for her to claim to be less than a full partner, due to the fact she was held out to the firm’s clients that she is a partner of firms and she also had agreed upon her name to be on the firms letterheads, where it had come to a cost to her of the liability for the partnerships of Glen and Peter’s debts for her to be liable for the debts they have left her.

This has been supported by the case of Lynch v Stiff and Nationwide Building Society v Lewis.

So is Sandy liable in the conclusion unfortunately for Sandy she is liable for $100 000 owed by the firm to the firms Creditors.

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Australia is a Lack Country NOT! Barnett Government your WRONG!

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Many people have asked “how do I make money online without spending a dime?”, Well I would not classify myself as an expert in this line, but many that I have come across are asking for money, which are generally are scammers and to our extent we lose a lot of money that we cannot afford too.

I find that many other sites like People Per hour, Guru, Elance, O’desk, Vworker and freelancer, many of these that I have tried out, I have gotten nowhere in as my bidding always seem to high, and when I check to see who has won the project your tasks they seem to been given to Overseas people who are bidding from 050-1.00 for the project, but within Australia we would not be able to live on that due we are pretty expensive place to live. My background shows I have a lot of experience and Have studied heaps I also feel that studying is a waste of time, due to I have not landed that dream job, so you are studying (Please get Part-time or temp work). I think many companies should give us Australians ago. I come across an Article “The Barnett Government, want state jobs to go to India”. Well Guess what they are wrong about this as there are many Local WA personals who love to work in the Local Government section, but they have been getting knocked done for the work, Plus GUESS what I am one of those workers who have been knocked down for work for the Local Government. We have applied for way too many jobs, such as Administration roles to which may dismay, I got knocked down even though having the experience to be able to do such roles, But my question is if the job is getting send overseas isn’t that like working from home like running a small business from home, as if it is there is plenty of Parents would take this job on and would love  the opportunity to work from home, who would be qualified to take on these types of work for Example : Virtual Assistants there are heaps in Australia, also maybe the government should start reassessing their values and think about Families who would love to work school hours and not the normal office hours  9 am- 5 pm.

So my overall opinion it is hard both ways no matter what, all we can do is try and keep positive attitude to whatever way we decide and we can only trust our own instincts and the best practice is make sure you do your research on both Local work and Virtual work. Good luck with your endeavour’s we wish you all SUCCESS!