Business Law
Joe entered into partnership with two others in the establishment of a real estate sales agency.
The other two, Sam and Harry, had considerable experience in the real estate business but no
money. Joe, on the other hand, had his own home and several significant assets, and although he
didn't have any experience in the real estate business, his monetary contribution made him an
equal partner with Sam and Harry. Unfortunately, Harry misused some trust funds that had come
into his care as a result of business, investing it in the business of one of his sons rather than an
interest-bearing account. The business of the son went sour and the money was lost. The client
sued Harry, Sam, and Joe.
a) Applying the relevant legal principles, identify and explain in details the type of
partnership involved. Discuss the liabilities of Harry, Sam, and Joe based on the relevant
legal principles. (5 marks)
Amanda and Florence decided to form a partnership for selling gourmet picnic baskets. To raise
sufficient capital, they convinced their mothers to invest $5000 each as limited partners.
Amanda's mother was an experienced restaurateur and watched the business with great interest.
On several occasions, she advised them on the business and contacted old business associates to
buy surplus stock. She even filled in taking orders in the office when needed. A customer who
was made ill by contaminated food from a tin can supplied in one basket sued.
b) Applying the relevant legal principles, identify and explain in details the nature of the
partnership as well as the liability, if any, of the mother(s) (5 marks)
Note: Application means you have to identify the correct legal concept, define it, enumerate
the elements (if any) and then apply it to the fact scenario before drawing conclusion..
Business Law Joe entered into partnership with two others in the esta.pdf
1. Business Law
Joe entered into partnership with two others in the establishment of a real estate sales agency.
The other two, Sam and Harry, had considerable experience in the real estate business but no
money. Joe, on the other hand, had his own home and several significant assets, and although he
didn't have any experience in the real estate business, his monetary contribution made him an
equal partner with Sam and Harry. Unfortunately, Harry misused some trust funds that had come
into his care as a result of business, investing it in the business of one of his sons rather than an
interest-bearing account. The business of the son went sour and the money was lost. The client
sued Harry, Sam, and Joe.
a) Applying the relevant legal principles, identify and explain in details the type of
partnership involved. Discuss the liabilities of Harry, Sam, and Joe based on the relevant
legal principles. (5 marks)
Amanda and Florence decided to form a partnership for selling gourmet picnic baskets. To raise
sufficient capital, they convinced their mothers to invest $5000 each as limited partners.
Amanda's mother was an experienced restaurateur and watched the business with great interest.
On several occasions, she advised them on the business and contacted old business associates to
buy surplus stock. She even filled in taking orders in the office when needed. A customer who
was made ill by contaminated food from a tin can supplied in one basket sued.
b) Applying the relevant legal principles, identify and explain in details the nature of the
partnership as well as the liability, if any, of the mother(s) (5 marks)
Note: Application means you have to identify the correct legal concept, define it, enumerate
the elements (if any) and then apply it to the fact scenario before drawing conclusion.
