BTB1010 Final: Commercial-Law Lecture Notes

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26 Jul 2018
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1. 4 disadvantages,of,a,partnership: unlimited,liability,of,general,partners, max,of,20,partners, may,be,difficult,for,partner,to,sell,their,interest,in,partnership, each,partner,becomes,bound,by,fellow,partners,acting,with,actual,or, apparent,authority, liability,for,wrongful,acts,committed,by,fellow,partners,in,course,of,business, or,with,authority,of,coipartners, 1. 5 does,a,partnership,exist?: loss,of,control,compared,to,sole,trader, look!at!definition!in!s1(1), look!at!partnership!act!re!positive!&!negative!rules, look!at!courts!approach! !case!law, look!at!s24!default!rules! In,common, partners: repetitive,facts, continuity, all,entered,into,contract, prepatory,acts, ,e. g. ,enter,into,a,lease, mutuality,of,interests, test,is,that,the,business,is,being,carried,on,by,,or,on,behalf,of,,all, mutuality,of,rights,&,obligations, common,interest,alone,is,not,enough, agency,is,not,a,prerequisite, all,entered,into,contract,!,mutuality,of,interest,(beckingham), entered,an,agreement, common,goal,, joint,decision,making, share,profit, ,prima,facie,evidence,of,partnership,(s2,(1)(c), with,a,view,to,profit, hope%v%bathurst%city%council% includes,any,trade,,occupation,or, profession", carrying,on, Joint!ownership!of!property!does!not!of!itself!create!a!partnership: s2! (1)(b)! !sharing!of!gross!returns, sharing!of!gross!returns!does!not!of!itself!create!a!partnership, s2! (1)(c)! !sharing!of!profits, sharing!of!profits!of!a!business!does!not!of!itself!make!a!partner! S2! (1)(c)(iv): a!person!lends!money!to!a!business!where!the!interest!rate!varies!with! the!business!profits!or!where!the!lender!will!receive!a!share!of!profits! arising!from!carrying!on!the!business!does!not!itself!make!the!lender!a! partner, s2! (1)(c), share!of!profits!of!a!business! !prima!facie!evidence!a!partnership! exists!but!this!can!be!rebuttable! If!ever!there!was!a!case!of!a!partnership!this!is!it . ": loss!sharing!agreement, sharing!of!profits! !prima!facie, court!held!e!no!partnership!exists, agreement!to!share!profits!re!s2! (1)(c), agreement!stated!port!jackson!was! agents"!of!beckingham! !supports! intention!not!to!be!partners, pj!was!to!carry!out!work!at!b"s!expense, indicates!no!sharing!of!all!obligations, on!other!hand!indicates!that!one!party!had!the!right!to!pledge! liability!of!the!other, clause!in!agreement!that!pj!was!not!responsible!for!safety!of!ship, no!partnership, agreement!did!not!describe!the!parties!as!partners! !said! joint!venture", parties!were!joint!venturers!in!commercial!operation!with!a!view!to!profit, profits!to!be!shared, policy!of!joint!venture!was!a!matter!of!joint!agreement, no!mention!of!sharing!of!losses! Court!held:: labels!not!decisive! (re#ruddock"s#case), sharing!profits, policy!of!joint!venture!decided/agreed!jointly, assignment!of!part!of!property!was!attempted, parties!interested!in!each!others!financial!viability!like!partners, loan!was!advanced!by!vs! to!the!joint!venture"!not!to!fourth!media, held!that!joint!venture!was!a!partnership! 1. 12 wrongful,acts,of,partners, venturers!each!of!who!is!both!principal!and!agent!as!to!the!others!within! the!scope!of!the!venture!over!which!each!venturer!exercises!some!degree! of!control. ": an!association!of!parties!who!agree!by!contract!to!engage!in!some! common!venture!without!forming!a!partnership! Insolvency!side!of!the!business!included!the!conduct!of!company! receiverships: court!concluded!therefore!that!acting!as!a!receiver!was!not!as!an! individual!appointment!but!as!part!of!firms!business, as!such,!court!concluded!that!the!partner!was!acting!in!ordinary!course!of! firms!business!when!he!committed!wrongful! (fraudulent!acts)!acts!in! question, every!partner!is!liable!jointly!with!the!other!partners!for!all!the!debts!and! obligations!of!the!firm!incurred!while!the!partner!is!a!partner! 1. 14 liability,of,incoming,and,retiring,partners, ,pg,18,of,cb1: every!partner!is!an!agent!of!the!firm!and!the!other!partners!, act!done, in!usual!way! !goldberg#v#jenkins#(pg!17!cb1), carrying!on!the!kind!of!business!by!the!firm! (industry!perspective)! Expectations!to!these!general!rules:: everyone!who!by!words!spoken!or!written!or!by!conduct! represents/holds!himself!out!of!knowingly!allows!himself!to!be! represented!as!a!partner!will!be!liable!as!a!partner!to!anyone! who!has!acted!on!that!representation!to!give!credit!to!the!firm, letterhead!stated!names,!williamson!ii!was!sole!proprietor,!stiff!dealt! with!williamson!iii!who!misappropriated!the!money!and!fled. Court!held: to!knowingly!allow!your!name!to!be!used!on!letterhead!is!sufficient! representation!as!a!partner!i. e. !constitute!holding!out, the!party!must!have!acted!on!the!faith!of!that!representation!giving! credit!to!the!firm, the!representation!need!only!be!partial!inducement! Court!held:: retired!partner!not!liable!as!he!had!not! knowingly"!allowed!himself!to!be! represented, persons!who!dealt!with!the!firm!before!the!change:, s36(1)! !where!a!person!deals!with!a!firm!after!a!change!in!its! constitution,!the!person!is!entitled!to!treat!all!apparent!members! of!the!old!firm!as!still!being!members!of!the!firm!until!the!person! has!notice!of!the!change, persons!who!have!not!dealt!with!the!firm!before!the!change, s36(2)! !an!advertisement!in!the!gazette!will!be!notice!as!to! persons!who!did!not!have!dealings!with!the!firm!before!the!date!of! the!dissolution!or!change!so!advertised, retiring!partner!not!known!to!creditor!before!retirement!to!be!a!partner, s36(3)! !a!partner!who!dies,!or!who!become!insolvent,!or!of!a! partner!who,!not!having!been!known!to!the!person!dealing!with! the!firm!to!be!a!partner,!retires!from!the!firm,!is!not!liable!for! partnership!debts!contracted!after!the!date!of!the!death,! insolvency,!or!retirement,!respectively.

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