You should answer the problem i attached the file for you.I will send you my notes.Just use those information and my note’s law for writing this homework. The format of case briefing is on attached documents and it summarized in the acronym IRAC .Issue,Rule,Application and conclusion.
TO BE RE-WRITTEN FROM THE SCRATCH
Partnership debt suit
Issue
“Romulus Bakery and Pastry Partnership” is a partnership business started by Jack and Mari as the co-owners who sign a written partnership agreement and contribute $50,000 each. Rob then joins the business as a pastry chef. Rob does not sign the partnership agreement but they have sign an agreement for hourly wages for forty hours a week and 10% share of the profits accruing from the business. Jack and Mari make an arrangement for the business to be located in Lulu’s building for at least a year with a monthly payment of $500 and 10% share of any profits. The partnership needs more capital hence Jack and Mari enter into an agreement with Ned for the latter to invest $50,000. Ned does not want to be a partner and Jack and Mari agree prior to the investment with Jack stating, ““That’s fine – you will not be a partner but you will get 10% of all profits of the business”.
Since the business still needs more money, Jack negotiates a loan for Romulus of $50,000 from Santa Rita Bank. The business needs more capital and on May 20, 2000, Mari explains the situation to a friend, Mr. Moneybags. Mr. Moneybags says, ““If you have trouble borrowing money, you can always tell people that I am your partner”. The following day, based on the conversation with Mr. Moneybags, Jack and Mari secure a loan of $100,000 from Bank of Money, telling the bank officer, ““Mr. Moneybags is our new partner”.
However, the business folds eighteen months later. At the time of closing, Romulus Bakery and Pastry Partnership owes Santa Rita Bank $49,000 and Bank of Money $99,000. So as to recover the loans, each of the banks sues Romulus, Jack, Mari, Rob, Lulu, Ned and Mr. Moneybags. What would be the result of the suits?
Rule
Jack and Mari found Romulus Bakery and Pastry Partnership as a partnership business entity. A partnership is liable for all the business liabilities, with the liability extending to each of the partners on an equal basis if the extent of sharing the liability is not stated.
“(A) partnership is an association of persons bound together by ties of agency”, (Class notes). Notably, an agency is created by involved partiesformally or informally agreeing to a contract. Business transactions with third parties requiring written contracts also require written agency relationship. To borrow money, it is not necessarily to sign a written contract.
All people who join a partnership when it is in operation share in the liabilities (and profits) accrued from the date they join. There is also a presumption that a person who is entitled to a share of the business profits is also a partner in the business. However the presumption can be rebutted if the person entitled to the share of profits can produce evidence showing that he is not a co-owner of the business but rather receives the profit shares for other r…………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………….. acronym IRAC
Get Professionally Written Papers From The Writing Experts