The Law of Business Organization Business Partnership

Question: Describe about The Law of Business Organization for Business Partnership. Answer: 1. The advice on the legal right of Fred Are Mary and Fred in partnershipIf so, when did it commence? A partnership is usually an agreement between two or more parties in which they come to agreement to put together their mutual interests. This an arrangement where parties, known as partners, agree to cooperate to advance their mutual interests. The parties in the partnership can be individuals, schools, organizations, businesses, and government and so on. These agreements are formed in various areas in which in the case of Mary and Fred, it was a partnership in the business category, in which they verbally agreed to start a business together. One of the basic features of a partnership is either a verbal or written agreement between the parties. So Mary and Fred are in partnership. This commenced at the moment they verbally agreed to merge their resources in a ratio of 6:4 respectively to start on a partnership and also by forming a draft business plan to start the business. What liabilities to partners have for debts incurred on behalf of the firm? Can Mary be a silent partner? How would that affect her liability?( if at all) The liabilities to partners that has incurred debts is leasing of the location site of the caf and the plants and the equipment of the business without Fred informing Mary about them all. Mary cannot be a silent partner since the business requires and involves an equal and active participation by every member to ensure that the business is successful. Hence, when Fred is left as the active member, it will no longer be a viable partnership business. This will greatly affect her liability in the sense that she will not be fully responsible for the day to day operations of the business. How could Mary and Fred have structured the new business to meet their respective needs? Mary and Fred could have structured the new business in the following ways to meet their respective needs. First by having a well-written agreement between them to ensure that it is legally formalized. Secondly y obtaining a license for the beginning of the partnership that will make them legal. Thirdly, by choosing a necessary location of the business that will be most suitable for the operation of the business. Then by having an insurance certificate in their business to ensure that they are fully covered from any damages that may result in incurrences of losses. 2. Advice ABC on whether they may be able to obtain an order for specific performance or damages and against whom shall such an order be made to Specific performance is a usually a specialized cure or rather remedy involved or used by various courts as the best option to compensating one of the parties if other methods in form of remedies cannot effectively satisfy the other party. I would advise the ABC Company to obtain the order of specific performance or damages since it will be the best solution to salvaging the incurred debts from the X-Cell Pty Ltd Company in conjunction with the Arion Chemical Pty Ltd. This option will be best opted by the court since ABC Company would have fully enjoyed if the agreement between the company and the X-Cell company could have been very successful provided it would have been performed. The court may in turn apply the legal action of replevin in which the actual property from the ABC Company will be transferred back from the X-Cell Company in the process of the dispute. This will help in the ending of the disputes between the two companies. Nevertheless, the court may opt to use several other legal remedies when a party has completely breached their contract of agreement. Hence, the courts may order the defendants to actually perform the task they were to perform instead of using the specific performance way. Thus, specific remedies are the most appropriate in finding the solutions to most of the arising company disputes.