Legal issues of Ferox Co.
SEMINAR II
The first legal issue relates to the nature of Ferox Co. The relationship between Alex, Brian, Christina and Sally also need to be clarified in legal terms as well as the relationship of Dominic and the firm at each stage. The second issue is who the persons liable for the first £50,000 debt and the second £50,000 from Emily. The third issue deals with the £30,000 that Dominic borrowed from Francis and the responsible parties who are liable for it. The fourth issue revolves around whether the contract between Francis and Dominic can be ratified by Alex.
One of the applicable laws is the Partnership Act 1980. S (1) of this act defines a partnership as the relation, which subsists between persons carrying on a business in common with a view of profit. In order to show a partnership, one should prove that 1) there is an existence of a business 2) the business is being carried on by two or more people 3) they share profits. A partnership is not a separate legal entity and therefore the partners do not benefit from limited liability.
Section 24 of the PA states that a general partner has the right to take part in the management of the business unless there is an agreement. A dormant partner provides capital only into the firm but does not take active part in the management of the business.
The partnership Act S33 (1), the death of a partner dissolves the firm. The share of the deceased partner goes to his personal representatives who are usually appointed by his will. They have the rights of a partner in dissolution. Yet, if there is an agreement among the partners, the partnership can continue in this case.
Section 14 of the Act states that everyone who by words, spoken or written or by conduct, represents himself or knowingly allows himself to be represented as a partner in a particular firm is liable as a partner to anyone who has, because of that, given credit to the firm or advanced money to it.
Another applicable law is that of
The first legal issue relates to the nature of Ferox Co. The relationship between Alex, Brian, Christina and Sally also need to be clarified in legal terms as well as the relationship of Dominic and the firm at each stage. The second issue is who the persons liable for the first £50,000 debt and the second £50,000 from Emily. The third issue deals with the £30,000 that Dominic borrowed from Francis and the responsible parties who are liable for it. The fourth issue revolves around whether the contract between Francis and Dominic can be ratified by Alex.
One of the applicable laws is the Partnership Act 1980. S (1) of this act defines a partnership as the relation, which subsists between persons carrying on a business in common with a view of profit. In order to show a partnership, one should prove that 1) there is an existence of a business 2) the business is being carried on by two or more people 3) they share profits. A partnership is not a separate legal entity and therefore the partners do not benefit from limited liability.
Section 24 of the PA states that a general partner has the right to take part in the management of the business unless there is an agreement. A dormant partner provides capital only into the firm but does not take active part in the management of the business.
The partnership Act S33 (1), the death of a partner dissolves the firm. The share of the deceased partner goes to his personal representatives who are usually appointed by his will. They have the rights of a partner in dissolution. Yet, if there is an agreement among the partners, the partnership can continue in this case.
Section 14 of the Act states that everyone who by words, spoken or written or by conduct, represents himself or knowingly allows himself to be represented as a partner in a particular firm is liable as a partner to anyone who has, because of that, given credit to the firm or advanced money to it.
Another applicable law is that of