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Law of Business Organisations

Law of Business OrganisationsQuestion 2 Will, Dave and Corinne are in a partnership as window repairers. Their business is called Windows R Us. Consider the following: (a)The business is run from an industrial shed which Dave owns. Dave pays for the upkeep of his shed, and the shed has remained basically unaltered since the business starting using it. However, due to rezoning of the area, the premises have substantially increased in value. Explain the nature of the property in relation to the partnership and, if the premises is sold, whether profits must be shared. (b)Corinne purchases some expensive tinted glass on credit from a glass wholesaler Glass House. Although Corinne actually wants the expensive tinted glass for her own private use (for a home she is building with her boyfriend Rove), she gives the impression to the salesperson at the Glass House that the purchase is on behalf of Windows R Us. Corinne has entered into this transaction on behalf of the partnership even though there was no express authority in the partnership agreement for Corinne to do so. Who will be liable for the debt incurred by Corinne? (c) (i) Dave and Corinne want to continue the business, but Wil is feeling like he wants to do something else with his life now, and thinks he would like to retire from the partnership. Advise Will in relation to what action he should take regarding his liability for debts incurred by the partnership after he ceases to be a partner. (ii) Unfortunately, before Will makes up his mind as to whether he wants to retire, he dies suddenly. The partnership agreement does not include any provisions relating to the death of a partner. Discuss the impact of Wills death on the partnership, and what happens with his share of the partnership.

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