ILAC20Assignment20Sem201
ILAC Assignment
Issue:
Does a partnership exist between Kendall, Kylie and Justin? Is “JJJ Boutique” or any other parties within “JJJ” able to be held liable for the outstanding debt owed to “Elegant Design Furniture Pty Ltd” (EDFPL)?
Law:
Statute:
Section 5 Partnership Act 1891 (Qld) (PA): Carrying on a business with a view of profits
Section 8 (PA): Power to bind firm s31 (PA) - Duty of partners to render accounts
Common Law: M Young Legal Associates Ltd v Zahid (2006): ‘The receipt by way of annuity or otherwise of a portion of the profits of a Business in consideration of the sale by that person of the goodwill of such business’
Molinas v Smith (1932): ‘actual express & actual implied authority’
Khan v Miah (2000): ‘Carrying on a Business with a view to profit
Application:
In definition, a partnership is “the relationship which subsists between persons carrying on a business in common with a view of profit.” Section 5 Partnership Act (1891). In the case regarding the outstanding debt owed by JJJ Boutique to Elegant Design Furniture Pty Ltd. (EDFPL) for the sale and delivery of the Versace couch and side table, it is evident through common law in the case of Khan v Miah [2000] that a partnership does exist. In this particular case, the House of Lords ruled that “a partnership commences when the proposed partners take the first step to implement their business plan” thus confirming the partnership between Kylie and Kendall. To further confirm the partnership between Kylie and Kendall, it is known that both partners receive a profit directly from the business.
In the case of JJJ, the position of “Justin” as a partner within JJJ can be confirmed through common law in the case of M Young Associated Ltd. V Zahid [2006].Evidence that Justin is a partner in the firm is clear even though he did not contribute capital or partake in a division of the profits achieved by the firm. In the related common law case, Zahid had no capital contribution nor did he receive a
Issue:
Does a partnership exist between Kendall, Kylie and Justin? Is “JJJ Boutique” or any other parties within “JJJ” able to be held liable for the outstanding debt owed to “Elegant Design Furniture Pty Ltd” (EDFPL)?
Law:
Statute:
Section 5 Partnership Act 1891 (Qld) (PA): Carrying on a business with a view of profits
Section 8 (PA): Power to bind firm s31 (PA) - Duty of partners to render accounts
Common Law: M Young Legal Associates Ltd v Zahid (2006): ‘The receipt by way of annuity or otherwise of a portion of the profits of a Business in consideration of the sale by that person of the goodwill of such business’
Molinas v Smith (1932): ‘actual express & actual implied authority’
Khan v Miah (2000): ‘Carrying on a Business with a view to profit
Application:
In definition, a partnership is “the relationship which subsists between persons carrying on a business in common with a view of profit.” Section 5 Partnership Act (1891). In the case regarding the outstanding debt owed by JJJ Boutique to Elegant Design Furniture Pty Ltd. (EDFPL) for the sale and delivery of the Versace couch and side table, it is evident through common law in the case of Khan v Miah [2000] that a partnership does exist. In this particular case, the House of Lords ruled that “a partnership commences when the proposed partners take the first step to implement their business plan” thus confirming the partnership between Kylie and Kendall. To further confirm the partnership between Kylie and Kendall, it is known that both partners receive a profit directly from the business.
In the case of JJJ, the position of “Justin” as a partner within JJJ can be confirmed through common law in the case of M Young Associated Ltd. V Zahid [2006].Evidence that Justin is a partner in the firm is clear even though he did not contribute capital or partake in a division of the profits achieved by the firm. In the related common law case, Zahid had no capital contribution nor did he receive a