The Case of “Hollywood or Bust – the Three Little Pigs”
Introduction When two or more people come together to carry on business in common with the purpose of making profit, the relationship between the persons is partnership. When the business is carried out in the form of partnership, it is important to know about the partnership law. Moreover, the business also should know about the agency law and the contract law because every partner is an agent of the firm and every business has to make contract to be legally binding in the business. However, in this assignment, the case of “Hollywood or Bust – The Three Little Pigs” will be discuses base on the Partnership Act 1895 (W.A).
Hollywood or Bust – The Three Little Pigs
Issue 1 i. Are Groucho, Harpo and Chico relationship is partnership? ii. Does Zeppo is partner in firm?
Rules of Law * Partnership is the relationship which subsists between persons carrying on business in common with a view of profit. To be a partnership it is also need to fulfill the for requirement which are the valid agreement between the firm by deed, inference from the conduct of the parties or verbally, the business is being carried out regularly and systematically, the business in common by and on behalf of all the partners and the business is carried on with a view to profit.1 * The receipt by a person of sharing of profits is prima facie evidence of partnership but does not of itself create a partnership. The debt paid out of profit to creditor is also not a partnership.2 * The receipt by a person of a debt or other liquidated amount by installments or otherwise out of the accruing profits of a business does not of itself make him a partner in the business.3
1 - Partnership Act 1895 WA S7 2 - Partnership Act 1895 WA S8 (3)
3 - Partnership Act 1895 WA S8 (4)
1 - Partnership Act 1895 WA S7 2 - Partnership Act 1895 WA S8 (3)
3 - Partnership Act 1895 WA S8 (4)
Application
First of all “The Three Little Pigs” was formed by the three friend Grouch, Harpo
Hollywood or Bust – The Three Little Pigs
Issue 1 i. Are Groucho, Harpo and Chico relationship is partnership? ii. Does Zeppo is partner in firm?
Rules of Law * Partnership is the relationship which subsists between persons carrying on business in common with a view of profit. To be a partnership it is also need to fulfill the for requirement which are the valid agreement between the firm by deed, inference from the conduct of the parties or verbally, the business is being carried out regularly and systematically, the business in common by and on behalf of all the partners and the business is carried on with a view to profit.1 * The receipt by a person of sharing of profits is prima facie evidence of partnership but does not of itself create a partnership. The debt paid out of profit to creditor is also not a partnership.2 * The receipt by a person of a debt or other liquidated amount by installments or otherwise out of the accruing profits of a business does not of itself make him a partner in the business.3
1 - Partnership Act 1895 WA S7 2 - Partnership Act 1895 WA S8 (3)
3 - Partnership Act 1895 WA S8 (4)
1 - Partnership Act 1895 WA S7 2 - Partnership Act 1895 WA S8 (3)
3 - Partnership Act 1895 WA S8 (4)
Application
First of all “The Three Little Pigs” was formed by the three friend Grouch, Harpo
References: Partnership Act 1985 (W.A) Partnership cases http://www.doc88.com/p-435424430758.html