FUNDAMENTAL OF BUSINESS AND CORPORATIONS LAW BLAW-5016

MODULE 7

Chapter 7 – Business Structures

Question 1

Ted and Beatrice are considering commencing a business of operating an on-line shoe store. Ted is an expert on computers and Beatrice is an expert on shoes. They are considering using a partnership arrangement. They want to draw up a partnership agreement, but are unsure of what they should agree upon. Ted is also worried that he may be exposed to all the debts of the business.

Required:

Advise Ted and Beatrice of what their partnership agreement should cover. Also explain to Ted the law relating to his exposure to partnership debts.

Question 2

Bill and Jane agreed to hire a theatre, put on a show and divide the proceeds between them 60/40. Bill had to pay the expenses of the hall including the theatre rent and outgoings and the cost of lighting. The travelling expenses, the remuneration of the actors and the cost of appliances had to be borne entirely by Jane.

Required:

Discuss whether Bill and Jane have a partnership or a joint venture.